Classification of goods- In the instant case, the applicant is engaged in the business of manufacturing and sale of Soya Oil, wherein Soya DOC, Soya husk etc are obtained through the process of solvent extraction of soya seed.

Soya husk resulting from extraction of soyabean oil is sold to the customers by the applicant company. The Soya husk so supplied by the applicant is used by the customers as input / ingredients to Cattle feed.

QUESTIONS RAISED BEFORE THE AUTHORITY IS AS FOLLOWS:

1) Whether Soya husk resulting from the extraction of Soyabean Oil, being an input / ingredient to Cattle feed is exempt from payment of GST, under HSN heading 2302, under Entry 102 of Notification No.2/17-Central Tax (Rate) dated, 28.06.2017, exempting the goods included therein from payment of GST.

2) If the answer to question 1 is no, then the determination/ classification of correct tariff and rate of tax thereon under which soya husk resulting from extraction of Soyabean oil, being an input / ingredient to Cattle feed, will fall?

Held that- Soya husk resulting from the extraction of Soyabean oil, being principal input/ ingredient for manufacture or processing of Cattle feed and Poultry feed which may become value added product in the market. Soya husk being principal input/ ingredient to Poultry feed and Cattle feed industry, which is taxable @ 5% under Subheading 2304 as per Entry 105 of Notification No.1/17-Central Tax (Rate) dated, 28.06.2017.

Soya husk will be covered by specific entry 105 of Schedule I attracting GST @5% under Chapter 2304.