AAR: “Inspection and testing” services for grapes not “necessary” for their production, denies exemption

Tamil Nadu AAR holds that the activities carried out by applicant, viz. testing for chemical residue, grading based on physical attributes of table grapes are not classifiable under SAC 9986, as they are not necessary for production of the grapes and not directly related to their production, and are accordingly not eligible for exemption, under Exemption Notification dated July 28, 2017; Applicant contended that since it undertakes ‘testing of agricultural produce’, it wo...