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2022 (2) TMI 716 - AAAR - GSTClassification of goods - rate of GST - Mango Pulp/puree - fresh fruit or not - mango pulp/puree falls under the heading 20079910 or 0804 or 2008? - 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 the product 'Mango Pulp/Puree'. 2. Rate of tax applicable on the Mango Pulp/Puree. Detailed Analysis: 1. Classification of the Product 'Mango Pulp/Puree': Appellant's Argument: - The appellant contended that Chapter 0804 covers "Edible fruit and nuts" including chilled fruits and nuts, but not pulp. They argued that the product is not merely fresh or dried but cooked, pre-heated to 60-80 degrees, and sterilized before packing. - They requested the classification of the product under Chapter Heading 2007, arguing it is "Fruit Puree obtained by cooking" and cited Chapter Note 5 to Chapter 20, which defines "obtained by cooking" as heat treatment to increase viscosity by reducing water content. - The appellant also referred to a memorandum from the Ministry of Food Processing Industries, stating that Mango Pulp and Puree are technically the same and classified under Chapter 2007. Authority's Findings: - The authority noted that Chapter 8 of the Customs Tariff Act, 1975, specifically includes 'Mango Pulp' under heading 0804 5040. - They emphasized that the specific entry for 'Mango Pulp' under Chapter 8 should be preferred over general entries in subsequent chapters, as per the principle that specific headings override general headings. - The authority disagreed with the appellant's contention to classify the product under Chapter Heading 2007, citing Chapter Notes to Chapter 20, which exclude fruits or nuts prepared or preserved by processes specified in Chapter 8. - The memorandum from the Ministry of Food Processing Industries was acknowledged but deemed irrelevant for tariff classification purposes. 2. Rate of Tax Applicable on the Mango Pulp/Puree: Appellant's Argument: - The appellant claimed that if classified under Chapter Heading 2007, the product would be chargeable to GST at 12% as per SI.No.39 of Schedule II to Notification No.1/2017-CT (Rate) dated 28-6-2017. Authority's Findings: - The authority examined various entries related to 'Mangoes and Mango Products' in the GST tariff notifications. - Entry No.51 of 0804 exempts only fresh mangoes from tax, while the amended notification No. 35/2017 Integrated Tax (Rate) dated 30.10.2017, which added entries for "Mangoes sliced, dried" taxable at 5%, did not mention 'Mango Pulp'. - Since there is no specific description for "mango pulp/puree" in the GST tariff notifications, the product falls under the residuary entry No.453 of Schedule-III of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, attracting a tax rate of 18%. Order: - The authority modified the previous ruling and held that 'Mango Pulp/Puree' is classifiable under Tariff Item 0804 50 40 and chargeable to GST at 18%, as per entry No.453 of Schedule III in Notification No.1/2011-Central Tax (Rate) dated 28.06.2017.
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