The Tamil Nadu Authority of Advance Ruling (AAR) ruled that 18% GST payable on Rodent Feed.
The applicant, M/s. Hylasco Bio-technology Private Limited has been importing rat feed and paying GST on the same under HSN 23099010. The Government of India vide Notification No. 02/2017 dated: 28.06.2017 has exempted certain categories of aquatic, poultry and cattle feed falling under HSN chapter 2302, 2304, 2305, 2306, 2308 & 2309 from tax under GST. The applicant is of the opinion that rate feed falls under Sl.No.102 of the said notification and seeks clarification regarding the exemption applicable to them.
The applicant has sought the advance ruling on the issue whether the product Rodent Feed can be classified under the HSN 2309 90 10 or not. If No, HSN applicable for the specified product. As HSN 2309 is exempt under the Serial Number 102 of Notification no. 02/2017, whether the product Rodent Feed which falls under the same group is also exempt, if not the taxability of the same.
The coram of S.V.Kasi Visveshavar Rao and B.Ragu Kiran held that product Rodent Feed can be classified under the HSN 2309 90 10 but cannot be covered under the exemption notification.
The AAR further ruled that description to Sl.No.102 does not include rodent feed and hence taxable under Sl.No.453 of Schedule III of Notification No. 01/2017 dated: 28.06.2017 at the rate of 9% CGST & SGST each.
“This exemption notification has grouped various tariff items under a single Serial no. 102 and has given an inclusive description for the same. Further neither the specific word ‘rodent feed’ nor the general words such as ‘animal feed’ are used. In this connection a reference need to be made to the law declared by the Hon’ble Supreme Court of India in the case of NDP Namboodripad Vs UOI (2007) 4 SCC 502 wherein it has been held that the word ‘includes’ can be used to connote a specific meaning i.e., as in “means and includes or comprises or consists of”. Therefore the description is exhaustive, and no further extension of the words used in the Notification can be made to include any other word,” the court noted.
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