Classification of service—  This Appeal has been filed against the advance ruling order pronounced by the West Bengal Authority for advance ruling.

The Appellant sought an advance ruling on the following questions:

a) Whether the instant composite supply of services by way of milling of food grains into flour to Food & Supplies Department, Government of West Bengal for distribution under PDS is eligible for exemption under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017);

b) If the instant composite supply does not fall under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 then what will be the rate of tax for such supply.

The WBAAR was of the view that the value of supply shall be both cash and non-cash consideration and exemption under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) will be available when the value of supply of goods in the said composite supply shall not exceed 25% of the value of the said composite supply. In case the value of goods supplied exceeds 25% of value of entire supply, the supply shall attract tax @ 5%.

Held that— 

This authority rule that in the instant case the supply of fortified wholemeal flour to the Food & Supplies Department, Government of West Bengal will fall under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017  and exempt from taxation.

The Advance Ruling order is modified to this effect and the Appeal stands disposed of accordingly.