Appellate Authority for Advance Ruling —– Mechanized Cleaning of Agriculture produce –--The appellant is engaged into the activities of cleaning of the various Agriculture produce like Saunf (Fennel) Dhaniya (Coriander), Jeera (Cumin seeds), etc, The applicant is having cleaning plant and they remove the various impurities but do not change the essential character of the agriculture produce but make the product marketable for primary market. The appellant sought an advance ruling as to whether this activity is covered under entry 24(i)(i)(c) or 24(i)(iii) of Notification No.11/2017-CTR dated 28/06/2017 attracting nil rate of tax or covered under entry 54(c) or entry 55 of Notification No 12/2017-CTR dated 28/6/17 attracting nil rate of tax. The Authority held that the activity of mechanized cleaning at an installed plant is not covered under the above clause and does not attract NIL rate of Tax. The appellant being aggrieved with the Ruling of the AAR, filed appeal before the Appellate Authority on the ground that the order had not taken into account the provision of Finance Act 1994 which were exempting the services.
Held that:- The Hon’ble Appellate Authority for Advance Ruling held the activity of the Appellant is not covered under Notification No. 11/2017-CTR dated 28/06/2017 and Notification No.12/2017-CTR dated 28/6/2017. Hence Ruling of the AAR is upheld.—Rara Udhyog, In Re… [2018] 05 TAXLOK.COM 108 (AAAR-Rajasthan)