9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1393 - AAR - GSTLevy of GST - animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags - Interpretation of statute - interpretation of words unit container as found in the schedule entries of the Notifications issued under the provisions of the IGST Act - Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in unit container ? Held that - Each frozen carcass is put in LDPE Bag (Primary Packing) which is not sealed & no weight is mentioned on such LDPE Bag. Thereafter, generally two of such LDPE Bags are put in HDPE Bag (Secondary Packing) and manually weight of two carcass is mentioned by marker. For instance, if one of the carcass weights 7 Kg & other one weight 6.5 Kg, the HDPE Bag would bear the marking as 8 7.5 -15.5 Kg - the impugned packing would satisfy the requirement of the definition of unit container as found in the Notification No.1-Integrated Tax (Rate) and Notification No. 2/2017- Integrated Tax (Rate) issued under the provisions of the IGST Act. In view thereof, the bags being supplied to Army by the applicant against tender qualify as product put up in unit container . Reliance on the case laws in the case of CCE v Simba Chips 1997 (7) TMI 330 - CEGAT, MUMBAI and Surya Agro Oils Ltd. v. Commissioner of Central Excise, Indore 1999 (11) TMI 264 - CEGAT, NEW DELHI would not be applicable herein as the definition under consideration in these cases is not similar to the one that we are dealing with herein. Classification - Applicability of Schedule entries - For the period from 14-11-2017 onwards - Held that - the Schedule entry no.9 does not cover frozen meat of sheep or goats when put up in unit container and bearing a brand name - the Schedule entry no.1 covers frozen meat of sheep or goats when put up in unit container and bearing a brand name - the impugned product would be covered by the schedule entry 1 of the Notification No.1-Integrated Tax (Rate) from 14-11-2017 onwards. Ruling - The bags being supplied to Army by the applicant against tender qualify as product put up in unit container - The impugned product would be covered by the schedule entry 4 of the Notification No. I-Integrated Tax (Rate) during the period 1-7-2017 TO 13-11-2017, the schedule entry 1 of the Notification No.1-Integrated Tax (Rate) from 14-11-2017 onwards.
Issues Involved:
1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by the applicant against tender shall qualify as product put up in "unit container"? 2. Whether the products as mentioned in query 1 shall be taxable under GST as per specified entries of the relevant notifications or fall under the exemption list? Issue-Wise Detailed Analysis: Issue 1: Qualification as "Unit Container" Facts and Contentions: - The applicant, M/S Ahmednagar District Goat Rearing and Processing Co-op Federation Ltd., supplies frozen sheep/goat carcasses in LDPE bags, which are not sealed and do not have weight mentioned. These LDPE bags are further packed in HDPE bags with the combined weight marked manually. - The term "unit container" is defined in the notifications as a package designed to hold a predetermined quantity or number, indicated on the package. Applicant's Argument: - The applicant contends that their packaging does not qualify as a "unit container" because the LDPE bags are not sealed, and the weight is not predetermined or standardized. Authority's Observations: - The definition of "unit container" includes any package designed to hold a predetermined quantity or number, which is indicated on the package. - The HDPE bags used by the applicant do indicate the weight of the carcasses, thus meeting the requirement of indicating a predetermined quantity. - The term "unit container" does not specify that the package must be sealed or that the quantity must be standardized in specific units like 1kg, 100ml, etc. - The bags used by the applicant are designed to hold a predetermined number of carcasses, and the weight is indicated on the package, satisfying the definition of "unit container." Conclusion: - The authority concluded that the packaging used by the applicant qualifies as a "unit container" under the GST law. Issue 2: Taxability under GST Relevant Notifications: - Notification No. 1/2017-Integrated Tax (Rate) dated 28th June 2017 specifies that frozen meat of sheep or goats put up in unit containers is taxable at 12% till 13th November 2017. - Notification No. 43/2017-Integrated Tax (Rate) dated 14th November 2017 reduces the tax rate to 5% for such products if they are branded. - Notification No. 2/2017-Integrated Tax (Rate) dated 28th June 2017 exempts meat of sheep or goats, other than frozen and put up in unit containers, from GST. - Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017 continues the exemption for non-branded products. Applicant's Argument: - The applicant argues that their product should be exempt from GST as it does not qualify as a "unit container." Authority's Observations: - The authority examined the relevant notifications and concluded that the product supplied by the applicant qualifies as a "unit container." - For the period from 1st July 2017 to 13th November 2017, the product is taxable at 12% as per entry no. 4 of Schedule II of Notification No. 1/2017-Integrated Tax (Rate). - From 14th November 2017 onwards, the product is taxable at 5% as per entry no. 1 of Schedule I of Notification No. 43/2017-Integrated Tax (Rate), provided it is branded. Conclusion: - The impugned product is taxable at 12% from 1st July 2017 to 13th November 2017 and at 5% from 14th November 2017 onwards, as it qualifies as a "unit container" and is branded. Order: - The questions are answered affirmatively, confirming the taxability of the product as per the specified entries in the relevant notifications.
|
