Page 124 - GSTL_27th August 2020_Vol 39_Part 4

450 GST LAW TIMES [ Vol. 39
7. Discussion and finding portion in the order dated 2-1-2020 reads as
under :-
“7.1 We have carefully considered the submissions made by the applicant
in the application, the pleadings on behalf of the Applicant made during
the course of personal hearing. We find that the issue raised in the applica-
tion is squarely covered under Section 97(2)(a)/(b) of the GST Act, 2017 be-
ing a matter related Io classification of the product, being produced by the
applicant and applicability of a cited Notification. The applicant have com-
plied with the all the requirements for filing this application as laid down
under the law. We therefore admit the application for consideration on
merits.
7.2 Going through the application of the party, it is found that the appli-
cant has sought confirmation of classification of their product to whom they
term it “Preparation of a kind used in Animal Feeding - Bio Processed
Meal” falling under HS Code 2309 90 90. Further it is noted that the main
raw material for the said preparation is ‘Meal of Soyabean’.
Further, the applicant has provided the following reasoning to establish
that the said product is meant for Animal Feeding.
“The protein content of the feed grad is less than 50% and not fit for hu-
man consumption. During the manufacturing process soya meal under-
goes through fermentation process. The process uses biotechnology to con-
vert protein structure to smaller molecular weight to increase efficiency
digestion and absorption. It also breaks down and reduce antigens or anti-
nutrient substance due to fermentation.”
7.3 We further notice that the applicant vide their letter dated 18-11-2019
has submitted an additional reply acknowledging a typographical error in
para 15F of their advance reply application submitting therein the follow-
ing :
“In continuation of our application dated 25-7-2019 and hearing on 14-
10-2019 for classifying our products under heading 2309 90 90 ‘prepara-
tion of a kind used in animal feeding - bio processed meal’ the applicant
wish to further inform that in place of statement as mentioned in 15(f) of
our advance Ruling Application “The protein content of the feed grade is
less than 50% and not fit for human consumption.” should be read as “The
protein content of the feed grade is up to 52%”
7.4 It is noted that the applicant is renowned manufacturer of soya based
products used for consumption of general public namely soya flakes/Grits,
Soya Flour, Soya lecithin, Soya Protein/TVP etc. They are also engaged in
manufacturing various products meant for animal feeding namely GMO
Soyabean meal, non GMO Soya Grits etc. They are also manufacturing soya
products for industrial use. The product meant for industrial use and for
consumption of general public are leviable to various rates of GST whereas
the applicant has claimed the chapter heading of 2309 90 90 which is exclu-
sively meant for animal feed attracts nil rate of duty. In such a situation a
critical analysis is required to establish that the said product is meant only
for animal feed.
7.5 The applicant has claimed the classification under HSN Code 2309 90
90 which is exclusively meant for animal feed and attracts nil rate of GST.
The chapter note 2309 reads as under :
“Note : heading 2309 includes product of a kind used in animal
feeding, not elsewhere specified or included obtained by processing
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