Shanti Prime Publication Pvt. Ltd.
Advance Rulings — Classification of Service — The applicant 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. That the agriculture produce contains dust particles, certain small pieces of stones, dust, mud and other impurities 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. Petitioner seek clarification whether this activity is covered under entry 24(i)(i)(c) or 24(i)(iii) of notification no. 11/2017-CT(Rate) dated 28.06.2017 attracting nil rate of tax or covered under entry 54(c) or entry 55 of notification no. 12/2017-CT(Rate) dated 28.06.2017 attracting nil rate of tax. Authority for Advance Ruling, Rajasthan held that:—The activity of mechanized cleaning does not fall 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 usually relates to agricultural operations directly related to production of any agricultural produce such as cultivation, harvesting, threshing, plant protection, testing, and supply of farm labour etc., carried out at agricultural farm. Hence the activity of mechanized cleaning at an installed plant is not covered under the above clause too and does not attract NIL rate of Tax. 51 TUD 280 (AAR-Rajasthan)