Page 118 - GSTL_27th August 2020_Vol 39_Part 4

444 GST LAW TIMES [ Vol. 39
feeding cattle, sheep, horses or pigs. Besides being highly nutritive, molasses enhances the
palatabitity of foodstuffs and thus extends the use of products of low nutritive value such
as straw, cereal husks, linseed flakes and fruit pomace which the animals would otherwise
be reluctant to accept. As a rule, these sweetened preparations are fed directly to the ani-
mals. However, some of them combine molasses with highly nutritive foods, such as
wheat bran, palm kernel or copra, oil cake, and are used to make complete feeds or sup-
plementary feeds.
5.3.5 The subject product is a complete animal feed supplement manu-
factured out of molasses mixed with 15 other ingredients to increase the nutrition
value of the feed supplement. From the submissions made by the applicant and
view of the above Chapter Notes, we find that the subject product is nothing but
prepared animal feed and therefore the same would fall under the said Chapter
Heading 23.09.
5.3.6 We agree with the jurisdictional officer that the classification of
the subject product under TSH 2309 90 10 of Customs Tariff Act, 1975 is correct.
We also agree with the submissions of the jurisdictional officer that the subject
product is capable of specific use as food supplement for animals & not capable
of any general use. Even though the product is not used in isolation as an animal
feed, the end use of product is only cattle feed. Further, the subject product was
claimed to be compounded animal feed under MVAT regime also.
5.3.7 Sr. No. 102 of Notification No. 2/2017-C.T. (Rate), dated 28-6-2017
says that Aquatic feed including shrimp feed and prawn feed, poultry feed and cattle
feed, including grass hay and straw, supplement and husk of pulses, concentrates and
additives, Wheat Bran and de-oiled cake falling under Heading Nos. ‘2301, 2302,
2304, 2305, 2306, 2308 and 2309’ are subject to NIL rate of duty.
5.3.8 In view of the above, we find that the subject product falls under
Chapter 23.09 and will be subject to NIL rate of duty.
5.4 Chapter Heading 23.03 deals with “Residues of starch manufacture
and similar residues, beet-pulp, bagasse and other waste of sugar manufacture,
brewing or distilling dregs and waste, whether or not in the form of pellets.
5.4.1 The Explanatory Notes at (C) under Chapter 23.03 says that “Ba-
gasse is a residue consisting of the fibrous portion of the sugarcane after the juice
has been extracted. It is used in the paper making industry and in the prepara-
tion of animal food. At (D) under the same Chapter Heading 23.03, the Explana-
tory Notes state that “Other waste products of sugar manufacture covered by this
heading include defecation scum, filter press residues, etc.”. The Explanatory
Notes also mention that the Heading 23.03 does not include Molasses resulting
from the extraction or refining of sugar.
5.4.2 Thus Chapter Heading 23.03 would only cover residues of starch
manufacture and similar residues, beet-pulp, bagasse and other waste of sugar
manufacture, brewing or distilling dregs and waste.
5.5 From the above discussions we observed that, while Chapter 23.03
covers only residues of starch manufacture and similar residues, beet pulp, ba-
gasse and other waste of sugar manufacture, brewing or distilling dregs and
waste. Chapter Heading 23.09 specifically covers preparations of a kind used in
animal feeding.

GST LAW TIMES  27th August 2020  118