GST LIABILITY CONFIRMED: RARA UDHYOG’S CLEANING SERVICES NOT EXEMPT

GST LIABILITY CONFIRMED: RARA UDHYOG’S CLEANING SERVICES NOT EXEMPT

RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX

BEFORE THE BENCH OF

1. ARCHANA P. TIWARI, MEMBERALOK GUPTA, MEMBER

2. ALOK GUPTA, MEMBER

Case Title : M/s Rara Udhyog

(GST AAAR RAJASTHAN)

Appeal No. RAJ/AAAR/APP/03/2018-19

Advance Ruling No. RAJ/AAR/2018-19/06 Dt. 23.06.2018

ORDER NO.RAJ/AAAR/3/2018-19

Date of Judgement/Order-  31st October 2018

BRIEF FACTS OF THE CASE

Para No. 3 That the Appellant is engaged into the activities of cleaning of the various Agriculture produce like Saunf (Fennel), Dhaniya (Coriander), Jeera (Cumin seeds), etc. or the like goods which are brought to them by the farmers or by the traders.

Para No. 4 That the agriculture produce contains dust particles, certain small pieces of stones, dust, mud and other impurities etc. The Appellant 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.

Para No. 5 The Appellant had applied for Advance Ruling whether the activity of cleaning of the above produce is exempted under the Entry S. No. 24 (i)(i)(c) and 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 and Entry S. No. 54(c) and 55 of Notification No 12/2017 -Central Tax (Rate) dated 28/6/17 .

Para No. 6 The Appellant had also cited previous law i.e. Section 66D of the Finance Act, 1994 and Point No. 4.4.6 of the Educational guide of Service Tax in their favour .

Para No. 25 We find that by no stretch of imagination activity of mechanized cleaning falls under intermediate production process as job work in relation to cultivation of plants. Intermediate production process as job work in relation to cultivation of plants are operations like harvesting, threshing, plant protection, testing, and supply of farm labour etc., carried out at agricultural farm.

Para NO. 26 In view of above, we don’t find any rational to interfere with the findings of the AAR. And so, we rule as under.

RULING

The activity of the Appellant i.e. M/S Rara Udhyog, Jaipur is not covered under Notification No. 11/2017-Central tax (Rate) dated 28/06/2017 and Notification No. 12/2017 — Central Tax (Rate) dated 28/6/17 . Hence Ruling of the AAR is upheld.