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2019 (10) TMI 796 - AAR - GSTClassification of goods - FANTA FRUITY ORANGE - whether classified under Chapter Heading 2202 99 20 at Sl.No. 48 under Schedule 11 as Fruit pulp or fruit juice based drinks , or under Chapter 2202 99 90 at SI.No. 24A under Schedule III as Other Non-alcoholic beverages or under 2202 10 at Sl.No.12 under Schedule IV as all goods (including aerated waters , containing added sugar or other sweetening matter or flavoured under Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 (as amended) ? HELD THAT - In the instant case the applicant had already filed an application, on 27.11.2017, for advance ruling before the Gujarat Authority for Advance Ruling in respect of the same question i.e. classification of the product Fanta Fruity Orange that has also been raised in the instant application. Hence it is clearly evident that the question raised by the applicant in the instant application, under the provisions of CGST Act 2017, has already been decided by the Gujarat Authority for Advance Ruling. Therefore the instant application is liable for rejection. Application rejected.
Issues Involved:
1. Classification of "FANTA FRUITY ORANGE" under the appropriate Chapter Heading and Schedule of the GST Tariff. Detailed Analysis: Issue 1: Classification of "FANTA FRUITY ORANGE" The applicant, a private limited company registered under the GST Act, sought an advance ruling on whether "FANTA FRUITY ORANGE" should be classified under: - Chapter Heading 2202 99 20 at Sl.No. 48 under Schedule II as "Fruit pulp or fruit juice based drinks", - Chapter 2202 99 90 at Sl.No. 24A under Schedule III as "Other Non-alcoholic beverages", or - Chapter 2202 10 at Sl.No.12 under Schedule IV as "All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured". Applicant’s Submission: 1. Product Composition and Manufacturing Process: - The product contains 10.5% Orange Juice, sugar, acidity regulators, preservatives, stabilizers, synthetic food colors, carbon dioxide, and sweeteners. - The manufacturing process involves mixing orange juice concentrate with water, sugar syrup, and other additives, followed by carbonation and packaging. 2. Classification Argument: - The applicant argues that the product should be classified under Tariff Item No. 2202 99 20 as "Fruit pulp or fruit juice based drinks" because the orange juice constitutes 10.5% of the total beverage and imparts the essential character to the drink. - They assert that the carbonation is only for preservation purposes and not to classify it under aerated waters. 3. Supporting References: - The applicant references various dictionaries and technical literature to define "base" and "flavour", emphasizing that the orange juice is the main ingredient giving the drink its essential character. - They also cite the US Customs Ruling No. N 122815, which distinguishes between fruit juice-based drinks and flavoured waters based on the dominant ingredient. 4. Legal Precedents: - The applicant references the Tribunal’s decision in CCE, Bhopal v. Parle Agro Pvt. Ltd., where a similar product "Appy Fizz" was classified under Tariff Item 2202 90 20 despite being aerated. Authority’s Findings: 1. Pending Application in Gujarat: - The applicant had already filed an application for advance ruling on the same issue before the Gujarat Authority for Advance Ruling, which culminated in a ruling (GUJ/GAAR/R/07/2019 dated 30.03.2019). 2. Legal Provisions: - Section 98(2) of the CGST Act, 2017, states that the Authority shall not admit an application where the question raised is already pending or decided in any proceedings in the case of an applicant under any provisions of the Act. Ruling: - The application filed by the applicant is rejected because the question raised has already been decided by the Gujarat Authority for Advance Ruling.
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