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TMI Blog2018 (7) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and Service Tax Act, 2017, the Central Government vide notification no. 2/2017-lntcgraled Tax (rate) New Delhi dated 28.06.2017 has exempted, Inter-State supplies of goods, from the whole of the Integrated tax leviable thereon. In the present case, the packing of the frozen carcasses and chicken done by them is only a medium of delivery and since these are not in pre-determined units, these packing cannot be termed as 'Unit Containers' - the packaging of frozen sheep/goat carcasses and frozen chicken for delivery in primary LDPE bags further packed in secondary HDPE bags or non-standardised quantity done by the applicant cannot be regarded as ‘Unit Container' since it is not standardised to hold a uniform pre-determined quantity. Ruling:- The whole (sheep/goat) animal carcass in frozen state/whole chicken 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 hags having mention of varying actual total weight of the carcasses packed in each such HDPE bags and supplied to Army Shall not quality as product put up in ‘unit Container'. The products as mentioned at (a) and (b) abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rand name on which actionable claim is available, were made taxable @ 5%. In view of the above, it is the applicant's case that the dispatches made by them in LDPF/HDPE bags, both primary well as secondary packing do not qualify as unit container and therefore their product is not leviable to tax under GST. Comment of the Officer under section 98 (1) of the CGST, HGST Act 2017 The Deputy Excise Taxation Commissioner (ST), Nuh (Mewat) vide his letter no. 577, dated 8.03.2018 as slated that the applicant dealer supplies frozen meat backed in PDPE bags in the shape of unit container. Since the applicant is supplying his goods packed in bags hence it qualifies as supply of goods in unit container. Record of Personal Hearing The applicant was afforded a personal hearing for 09.04 2018. The issue raised by the applicant for advance ruling, whether their product can be said to be packed in unit container to fall under the scope of notification no. 1/2017 or 2/2017-Integrated Tax (rate) dated 28.06.2017 and further under the scope of notification no. 43/2017 or 44/2017 - Integrated Tax (rate) dared 14.11.2017 is covered under the scope of section 97 of CGST/HGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 10. 0204 Meat of sheep or goats, [other than frozen and put up in unit containers] 7. 0207 Meat and edible offal, of the poultry of heading 0105, [other than frozen and put up in unit containers.] W.e.f. from 15 th November, 2017 onwards. Schedule I of the Notification no. 43/2017-Integrated Tax (rate) dated 14 th November, 2017 deals with the products which are subject to 5% GST and entry No. 1 which pertain to sheep meat and poultry meat are provided below:- Schedule-I Sr. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 1. 0204 0207 All goods (other than fresh or chilled) and put up in unit container and- (a) bearing a registered brand name; (b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r not, it is worth understanding the meaning of the word unit container. As per the explanation appended with the above stated notification:- the phrase unit container' means a package, whether large or small (for example tin, can, jar. box, bottle, bag, carton. drum, barrel or canister) designed to hold a pre-determined quantity or number, which is indicated on such package. It is the ease of the applicant that they supply to Army sheep/goat meat in carcasses of different weight and size in frozen State and similarly whole chicken of different weight and size is also supplied in frozen Stale. Each frozen carcass is put in LDPL bag (primary racking) which is not sealed and no weight is mentioned on such LDPE bags. Thereafter, generally two of such LDPE hags are put in HDPE bags (secondary packing) and manually the weight of both the packed carcasses is mentioned on the secondary packing by a marker. Similarly, each frozen chicken is packed in LDPE bag (primary packing) which is not sealed and no weight is mentioned on such LDPE bags. Thereafter. such LDPE bags are put in HDPE bags (secondary packing) which do not contain fixed number or primary packing and also no q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r number. It should he such that when packed it holds the predetermined quantity or the number for which it is designed. As shown to us the packaging by the applicant can weigh 10 Kgs or 11 Kgs or for that matter 10.5 or 10.25 kgs. depending upon the weight of two frozen carcasses or weight or 20-25 frozen chickens, as the case may be, packed in secondary packaging. Neither the packaging is uniform or standardised nor the packages are designed to hold a predetermined quantity. Advance ruling under section 98 or the CGST/HGST Act 2017 In the backdrop of above discussion and findings it is ruled that (a) The whole (sheep/goat) animal carcass 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 hags having mention of varying actual total weight of the carcasses packed in each such HDPE bags and supplied to Army Shall not quality as product put up in unit Container' (b) The whole chicken in frozen state in different weight and size packed in LDPE bags and then 20-25 such LDPE bags further packed in HDPE bags having mention of varying actual total weight of birds packe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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