GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri G. Lakshmi Prasad, Addl.Commissioner(Policy)( FAC)

Dr. K. Raghavaiah, Jt. Commissioner(Audit - II )

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A.R.Com/ 416 /2005. Dated : 2nd March, 2009.

Ref:- CCT's.Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

M/s. G.M.R. Solvents, Boraj, Adilabad Dist., have filed an application and sought for clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

The applicant stated in his application as follows:

They have been dealing with the business in Soya seed. They purchase soya seed from the Cultivators, the local registered dealers and the dealers out side the State. Then the Soya Seed is given for crushing to obtain Oil. While crushing Soya seed, the yield of Soya Crude Oil and soya De-oiled cake or in the proportion of about 19% and 81% respectively. The "Soya De-oiled cakes" purchased by the farmers and used as only Poultry Feed but not used for human consumption.

Having stated so, the applicant by relying on the STAT order in the case of Kasireddy Gurual Reddy and Company, Warangal Vs. State of AP (14 APSTJ 77), contends that the Soya bean de-oiled cake is liable to tax at the rate of 1% only as cattle or poultry feed, in spite of specific entry for de-oiled cases. The applicant wants to know the tax liability under AP VAT Act, 2005, if the Soya de-oiled cake, obtained from the soya Seed purchased made from cultivators and sold through Non-Resident Commission Agents (i.e.Consignment ).

The issue has been examined with reference to the provisions of the APVAT Act and Rules and HSN Codes notified by Government vide G.O.Ms.No:398, Revenue (CT.II) Department Dated 31-03-2005 and G.O.Ms.No:490, Revenue (CT.II) Department Dated 15-04-2005 as superceded in G.O.Ms.No.1596, Revenue(CT-II) Dept. dt.27.08.2005, in G.O.Ms.No.1615, Revenue (CT-II), Dept. dt.31.08.2005, G.O.Ms.No.502, Rev. (CT-II) Dept., dt.1-5-2006 w.e.f. 1-5-2006, G.O.Ms.No.656, Revenue (CT-II), Dept. dt.2.06.2006 G.O.Ms.No.795, Revenue (CT-II), Dept. dt.29.06.2006 and also on the case law (14 APSTJ 77) relied on by the applicant.

V. It is seen that the decision of the Hon'ble STAT (14 APSTJ 77) has reference to the entry in the APGST Act, which is different from the entry under AP VAT Act. Hence the said orders of the Hon'ble Tribunal cannot be relied on, while interpreting the entry under AP GST Act.

Under the AP VAT Act, the description of the entry 3 of the Schedule I is as follows:

" Aquatic feed, Poultry feed, Cattle feed, including grass, hay, or straw and feed supplements or nutrients".

Entry 87 of the IV Schedule enumerates " Oils cakes and De-oiled cakes" liable to VAT @ 4%. The specific entry overrides the general entry. Further the test of end use cannot be applied, when the entry is quite clear. Therefore, the Soya bean De-oiled cake cannot be classified as poultry feed or feed supplement.

However, the Government vide G.O.Ms.No.356 Revenue (CT-II) Dept. Dt.28.2.2009, made an amendment and added Soya Bean De-oiled Cake to the entry 3 of I Schedule to the AP VAT Act, 2005 w.e.f. 1.3.2009. Thus the Soya Bean de-oiled cake, when used as poultry or cattle feed supplement, is exempted from levy of tax w.e.f.1.3.2009.

Therefore the ruling is that, "Soya bean de-oiled Cake" dealt by the applicant, falls under entry 87 of the IV Schedule, taxable @ 4% up to 28.2.2009 and exempted from levy of tax w.e.f. 1-3-2009, if it is used as poultry or cattle feed supplement.

With regard to transaction of Soya de-oiled cake sold through Non-Resident Commission Agents, the dealer shall pay tax @ 4% under Section 4 (4) of AP VAT Act, 2005 on the value of the purchases of the raw material ( i.e. Soya Bean/ Soya bean cake ) corresponding to the Soya De-Oiled Cake, produced and sold through Non-resident Agent.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.

Addl/Jt.Commissioner