9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 1309 - AT - CustomsClassification of imported goods - carbonated food drinks such as Big Cola, Big Orange Cola, Big Lemon etc. - classifiable under Tariff Item 2202 99 20 of the Customs Tariff Act, 1975 and specified at Sl. No.48 under Schedule-II as fruit pulp or fruit juice based drinks of Notification No.1/2017-Integrated Tax (Rate) dated 28.06.2017 or not - the imported product is in conformity with clause 3-A to Regulation 2.3.30 of Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 as amended, or not - HELD THAT - The issue is no more res integra and the facts of the present case are squarely covered by the decision of the Tribunal in Appellant s own case COMMISSIONER OF CUSTOMS (PREV.) , WEST BENGAL, KOLKATA VERSUS M/S ANUTHAM EXIM PRIVATE LIMITED 2021 (2) TMI 822 - CESTAT KOLKATA - The Tribunal in the said case rejected the Appeal filed by the Department and held that the subject goods are appropriately classifiable under tariff item 2202 99 20. It is abundantly clear that the issue has since been decided by the Tribunal in Appellant s own case for the consignments of the identical goods, imported previously, the impugned order is liable to be set aside. Appeal allowed - decided in favor of appellant.
Issues Involved:
1. Classification of imported carbonated beverages with fruit juice under the Customs Tariff Act. 2. Applicability of IGST rates on the imported goods. 3. Validity of the reassessment and demand for differential IGST duty by the Department. 4. Relevance of previous tribunal decisions and Supreme Court judgments on similar matters. Detailed Analysis: 1. Classification of Imported Carbonated Beverages with Fruit Juice: The primary issue revolves around the classification of the imported products, which are carbonated beverages containing fruit juice, under the Customs Tariff Act. The Appellant classified the goods under tariff item 2202 99 20 as "fruit pulp or fruit juice based drinks," attracting an IGST rate of 12% as per Notification No.1/2017-Integrated Tax (Rate). The Department, however, re-assessed the goods under tariff sub-heading 2202.10, treating them as "carbonated flavoured waters," which would attract a different rate. The Tribunal referenced its previous decision in the Appellant's own case (Final Order No.75031/2021), where it was held that the goods are rightly classifiable under tariff item 2202 99 20. The Tribunal reiterated that the goods are sold as "carbonated beverages with fruit juice," and the classification should reflect this unique characteristic. The Tribunal emphasized that both components—carbonated water and fruit juice—are essential to the product's identity, and thus, the classification under 2202 99 20 is appropriate. 2. Applicability of IGST Rates: The classification under the Customs Tariff Act directly impacts the IGST rate applicable to the imported goods. The Tribunal noted that the Customs Tariff is relevant for determining the IGST payable on imported goods. By classifying the goods under 2202 99 20, the applicable IGST rate is 12%, as specified in the IGST Rate Notification. 3. Validity of the Reassessment and Demand for Differential IGST Duty: The Department issued a Show Cause Notice for prior consignments imported between April 2018 and April 2020, demanding a differential IGST duty amounting to Rs.7,04,65,625/- under Section 28(8) of the Customs Act. The Principal Commissioner confirmed this demand without conducting a personal hearing. The Tribunal found this approach flawed, as the issue had already been settled in the Appellant's favor in a previous tribunal decision. The Tribunal underscored that the reassessment and subsequent demand were not justified, given the prior decision classifying the goods under 2202 99 20. The Tribunal set aside the impugned order, thereby nullifying the demand for differential duty. 4. Relevance of Previous Tribunal Decisions and Supreme Court Judgments: The Tribunal heavily relied on its previous decision (Final Order No.75031/2021) and the Supreme Court's judgment in the case of Parle Agro. The Supreme Court had classified a similar product, Appy Fizz, under 2202 99 20, despite the product containing only 10% apple juice. The Tribunal noted that the FSSAI regulations also recognize a category for "carbonated beverages with fruit juice," supporting the classification under 2202 99 20. The Tribunal dismissed the Department's reliance on the Advance Ruling Authority's decision and the GST Council's support for such a decision, stating that these are not binding precedents. The Tribunal also clarified that the food category descriptions in the FSSAI Regulations are not relevant for Customs Tariff classification. Conclusion: The Tribunal concluded that the imported carbonated beverages with fruit juice are correctly classifiable under tariff item 2202 99 20, attracting an IGST rate of 12%. The reassessment and demand for differential IGST duty by the Department were set aside. The Tribunal's decision aligns with previous judgments, including the Supreme Court's ruling in Parle Agro, affirming the classification under 2202 99 20. The appeal filed by the Appellant was allowed, and the impugned order was set aside.
|
