The Services provided by the applicant related to testing of chemicals in fresh table grapes are not classifiable under SAC 9986 and is not exempt
Classification of service— In the instant case, applicant is engaged in providing various inspection, verification, testing and certification services in the agriculture and food production process in its laboratories set up in India.
Applicant has sought Advance Ruling on the following question:
Whether the supply of “inspection and testing services” on fresh table grapes is classifiable under entry 9986 of Notification no. 11/2017-Central Tax Rate) dated June 28 2017- “Support services to agriculture, forestry, fishing, animal husbandry” chargeable to NIL rate of tax and Entry 54 (a) of exemption notification no.12/2017-Central Tax (rate) dated June 28,2017?
Held that— For the case in hand, the activities of testing for chemical residue, grading based on physical attributes of table grapes are not classifiable under SAC 9986 as they are not meant for preparation of crops for primary market and not necessary for production of the grapes. Hence, they are not directly related to the production of the table grapes. Accordingly, the activities of the applicant are not eligible for the exemption under therefore the applicant is not eligible for exemption at Entry No. 54 (a) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017