Tea procured from public tea auctions not to be considered as agricultural produce : AAAR
The Appellate Authority for Advance Ruling upheld the ruling given by the Advance Ruling Authority by observing that the benefit of the exemption granted vide Serial No 54(e) of Notification No. 12/2017- Central tax (rate) is not available to the appellant as the product i.e. tea procured from public tea auctions or manufacturers of tea in bags, after undergoing various stages of processing being stored in the warehouses by the appellant’s client are not the agricultural produce.
Below if the Extract of Order of Appellate Authority for Advance Ruling
33. Now, after we conclude that the products stored in the warehouse of the appellant are not the agricultural produce, we come to the question asked in the advance ruling application filed by the them i.e. “Whether the supply of warehouse services used for packing & storage of tea, under above mentioned facts & circumstances was/is exempted vide Serial No 54(e) of Notification No. 12/2017- Central tax (rate) or otherwise.”. The answer to this question will be negative as the said exemption granted vide the above notification is provided to the storage and warehousing services when provided in relation to the agricultural produce.
We do not find any reason to interfere with the ruling given by Authority for Advance Ruling vide No. GST-ARA-30/2017-18/B-38 dated 23.05.2018.
Thus, the appeal is rejected in terms of the above order.
Click here to download the Order of Appellant Authority of Advance Ruling
Click here to download the Order of Authority of Advance Ruling