Classification of goods— In the instant case, the applicant company is in their written submission stated that company is a 100% grain-based distillery and manufacturing alcohol using Grains as raw material. 

QUESTIONS ON WHICH THE ADVANCE RULING SOUGHT IS AS FOLLOWS:-

A. Whether in the facts and circumstances of the case elaborated in body of ground hereunder, DWGS is by-product or residues?

B. Whether “DWGS” is to be classified under Tariff Entry 2309 of GST Tariff?

C. Whether in the facts and circumstances of the case, “DWGS” which is sold as Cattle Feed in the Trade are to be classified under Tariff Entry 2309 of GST Tariff?

As per meaning provided in Wikipedia, the Brewing is the production of beer by steeping a starch source (commonly cereal grains, the most popular of which is barley/wheat) in water and fermenting the resulting sweet liquid with yeast.

In the instant case, it is fact that in the process of manufacturing of alcohol, the ‘starch portion’ present in the wheat grain is utilized through distillation process. Means ‘starch present in the wheat grain’ is being processed in brewery. Hence, main key element i.e. ‘starch’ is present here. Further, the applicant company is a kind of brewery where brewing or distilling process are being undertaken.

Held that— DWGS (Distillers Wet Grain Solubles) is an inevitable outcome in the process of manufacturing of alcohol. Apart from nomenclature whether it is residue or by-product, we find that it is a kind of brewing or distilling dregs & waste and is classifiable under Chapter / Heading/Sub-heading / Tariff item 2303 of GST Tariff.