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2022 (2) TMI 717 - AAAR - GSTClassification of goods - rate of GST - Mango Pulp/puree - fresh fruit or not - mango pulp/puree falls under the heading 20079910 or 0804? - exemption from GST - rate of tax payable on outward supplies of Mango fruit Pulp/ Puree under the GST Act - HELD THAT - The appellant reiterate that technically there is no difference between 'puree' and 'pulp'. The appellant quoted the reference of Memorandum issued by Ministry of Food Processing Industries, Government of India in F.No.E-12/2/2019-ED dt 06.10.2021, which states that Mango Pulp and Mango Puree are the same thing from a technical angle. With reference to the nomenclature of the product, this authority does not differ with the above opinion. But, the Memo cited has been issued for a different purpose, not on the classification of the product or it's chapter heading. The claim of the appellant in this regard stating that clarification has been issued on the tariff code of the product is out of place. Rate of duty applicable on the Mango Pulp - HELD THAT - As there is no specific description of mango pulp/puree. , under GST tariff notification, the entry no. 453 of Schedule-III of Notification No.1/2017--Central Tax (Rate) dt 28.06.2017 is applicable, which is a residuary entry covering goods which are not specified in Schedules I, II, IV, V, VI of the Notification, attracting the tax rate of 18%. Thus, 'Mango Pulp /Puree' is classifiable under Tariff Item 0804 50 40 and chargeable to GST 18%, by virtue of entry No.453 of Schedule III in Notification No.1/2011-Central Tax (Rate) Dated 28.06.2017.
Issues Involved:
1. Classification of Mango Pulp/Puree under GST. 2. Applicability of tax rate on Mango Pulp/Puree. Detailed Analysis: 1. Classification of Mango Pulp/Puree under GST: - Background of the Case: M/s. Sri Manjunatha Fruit Canning Industries, engaged in the business of supplying mango pulp/puree, sought clarification on the classification and tax rate of their product under GST. The appellant initially filed an application for Advance Ruling on whether Mango Pulp could be treated as fresh fruit and exempt from tax, or if it falls under headings 20079910 or 0804, and the applicable tax rate. - Authority for Advance Ruling Decision: The Authority for Advance Ruling, Andhra Pradesh, determined that Mango Pulp/Puree should not be treated as fresh fruit nor classified under headings 20079910 or 0804, but instead under entry no. 453 of Schedule-III of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, attracting a tax rate of 18%. - Appellant's Grounds of Appeal: The appellant contended that Mango Pulp/Puree is essentially fresh fruit and should not be liable to tax. They argued that the process of converting fruit into pulp/puree only increases the shelf life without altering its fundamental nature. The appellant also suggested that the product could be classified under HSN code 200799.10 or as a drinkable product under heading 2202 9920. - Appellate Authority's Discussion and Findings: - Paragraph 2.1: The appellant's claim that Mango Pulp/Puree is fresh fruit and not taxable was dismissed as irrelevant, citing case laws related to milk products, which are not applicable to mango pulp. - Paragraph 2.2: The authority agreed with the appellant that there is no significant difference between puree and pulp in terms of nomenclature. - Paragraph 2.6: The authority examined the classification of Mango Pulp and concluded that it falls under chapter heading no. 08045040 of the Customs Tariff Act, 1975, which specifically lists 'Mango Pulp'. - Specific Entry Preference: The authority emphasized that when a specific entry exists for a product, it should be preferred over general descriptions. Chapter 8 of the Customs Tariff Act, 1975, specifically includes 'Mango Pulp', thus overriding other general entries in subsequent chapters. 2. Applicability of Tax Rate on Mango Pulp/Puree: - Appellant's Arguments: - Paragraph 2.4 to 2.7: The appellant requested classification under Chapter Heading 2007, arguing that Mango Pulp is 'Fruit Puree obtained by cooking'. They referred to Chapter Note 5 to Chapter 20, which defines 'obtained by cooking'. - Paragraph 2.3: The appellant contended that Mango Pulp is drinkable and should be classified under heading 2202 9920 for fruit juice-based drinks. - Appellate Authority's Discussion and Findings: - Chapter 20 Exclusion: The authority noted that Chapter 20 explicitly excludes fruits prepared or preserved by processes specified in Chapter 8. Therefore, Mango Pulp falls under Chapter 8. - Specific Entry for Mango Pulp: The principle of specific entries taking precedence over general descriptions was reiterated. Since Chapter 8 specifically lists 'Mango Pulp', it should be classified under this heading. - Applicable Tax Rate: The authority found no specific entry for Mango Pulp in GST tariff notifications. Therefore, the product falls under entry no. 453 of Schedule-III of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, attracting an 18% tax rate. Order: The Appellate Authority for Advance Ruling modified the earlier order, classifying 'Mango Pulp/Puree' under Tariff Item 0804 50 40 and subjecting it to an 18% GST rate as per entry no. 453 of Schedule III in Notification No. 1/2017 - Central Tax (Rate) dated 28.06.2017.
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