2019 (10) TMI 271 - AAR - GST

Permission for withdrawal of application - Classification of goods - Dried Coconut (Shelled Peeled) - HELD THAT - The application filed by the Applicant for Advance Ruling is disposed as withdrawn.

Summary

Issues: Classification of supply of "Dried Coconut (Shelled & Peeled)" under GST

Analysis:
The Advance Ruling Authority in Tamil Nadu addressed the issue of the classification of the supply of "Dried Coconut (Shelled & Peeled)" under the GST regime. The applicant, a registered entity under GST, sought an advance ruling on the classification of this product. The applicant contended that dried coconut, being an edible product consumed by the general public, should fall under HSN Code 08011920. They highlighted the distinction between dried coconut meant for human consumption and copra, which is classified differently and used for industrial purposes such as coconut oil production. The applicant emphasized the various uses of dried coconut in culinary practices, domestic households, religious offerings, and children's consumption for better immunity.

Furthermore, the applicant argued that the legislative intent was to classify "Edible Dry Coconut" under the category of "Fruit & Nut" for human consumption, while distinguishing it from copra, which is considered unfit for human consumption and primarily an industrial item. The applicant also pointed out the international practice of referring to the product as "Edible Dry Coconut shelled and peeled," aligning it with the category of edible dry fruit and nuts. The applicant requested the classification of "Dry Coconut (Shelled & Peeled)" under the appropriate heading, emphasizing its edibility and distinct nature from copra.

Despite being given an opportunity for a personal hearing, the applicant withdrew the application as they had already applied for provisional assessment. Consequently, the ruling authority disposed of the application as withdrawn, without providing a specific classification or determination regarding the issue raised by the applicant. The ruling highlighted the procedural aspect of the withdrawal and did not delve into the substantive classification of the product in question under the GST framework.

In conclusion, the judgment by the Advance Ruling Authority in Tamil Nadu did not provide a definitive classification for the supply of "Dried Coconut (Shelled & Peeled)" under the GST regime. The ruling was limited to the disposal of the application due to the applicant's withdrawal, indicating a procedural resolution without a substantive determination on the classification issue raised by the applicant.