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TMI Blog2020 (4) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... ulp would be squarely covered under the entry No.453 of Schedule III of the Notification No.01/2017- Central GST (Rate) dated 28.06.2017, which attracts rate of GST @18%. - GUJ/GAAR/R/24/2019 In Application No. Advance Ruling/SGST&CGST/2018/AR/15 - - - Dated:- 25-9-2019 - R.B. MANKODI AND G.C. JAIN MEMBER Present for the applicant: Shri Jatin Mehta 2. The applicant, vide Form GST ARA-01 dated 06.04.2018, mentioned their queries as under: QUERRIES At What rate GST payable on supply of MANGO PULP falling under Heading No. 08045040 of the Customs Tariff Act, 1975 and rate of GST? 2.1 The Applicant M/s. Universal Import Export, vide attached sheet Annexure A to their application dated 06.04.2018, has submitted the Statement of Facts as under: Background of the applicant: 1. M/s. Universal Import Export (here in after referred to as the applicant ) is a Partnership Firm, registered under the provisions of the Partnership Act, 1932 and is engaged, inter alia, in the supply / marketing of Agriculture Produce, the then time, falling under Schedule-I and Schedule-II of the Gujarat Value Added Tax Act, 2006 (in short, the Act ). Registered Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r referred to as the CTA ), therefore, it may be germane to refer to the provisions of the CTA, which read as under: The goods - Mango Pulp is specifically classified under CTA sub-heading number 0804 50 40, as reproduced under: Chapter 8 Edible fruit and nuts; peel of citrus fruit or melons Tariff Item Description of goods Unit Rate of duty Standard Preferential Area 0804 Dates, figs, pineapples, avocados, mangos, and mangostccns, fresh or dried. 0804 50 Guavas, mangoes and mangosteens: 0804 50 40 Mango pulp kg. 30% 20% Classification applicable GST Rate, Central Excise Duty rate VAT rate: 6. Various notification prescribing GST rates which may or may not cover Mango Pulp, as described above, are extracted hereunder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the notifications published, which is falling under Heading No. 0804 50 40 of the Customs Tariff Act, 1975? 2.2 The Applicant, vide attached sheet Annexure B to their application dated 06.04.2018, has submitted the Statement containing the applicants interpretation of law and/or facts which is as follows: 1. Notification No. 01/2017-Central Tax (Rate) and No. 02/2017- Central Tax (Rate), both dated 28-06-2017, provides that for the purpose of this notification, Tariff item , sub-heading , heading and Chapter shall mean respectively a tariff item, sub-heading, heading, and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Therefore, classification of the any goods shall be in accordance with the classification of the CTA. Annexed hereto and marked as ANNEXURE-C is copy of Rules for interpretation of Customs Tariff . 2. Accordingly, Rules for interpretation of Customs Tariff read with General Explanatory Notes appended therewith shall be applied for determination of classification of any goods. As per CTA, HS code relating to Mango Pulp is as under: Tariff Item Descriptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fresh or dried. 3. With this background the applicant now proceeds to interpret exigibility of Mango Pulp and GST Rate applicable, as under: 4. The entry No. 51 of the Notification No. 02/2017-Central Tax (Rate) covers the goods viz. Dates, figs, pineapples, avocados, mangos, and mangosteens, fresh , accordingly as stated above, the same shall apply to Mango Pulp , a sub classification of Mango - Fresh as specified under CTA falling under HS Code 0804 and as explained hereinabove. Accordingly, Mango Pulp is covered by entry No. 51 of Schedule- I of Notification No.02/2014-Central Tax (Rate). 5. Whereas entry No. 16 of the Schedule - II of Notification No. 01/2017Central Tax (Rate) covers the goods viz. Dates, figs, pineapples, avocados, mangos, and mangosteens, dried, accordingly the same shall apply to the goods specified therein which are dried. Mango Pulp, the product under present consideration, is not dried but fresh and that too in liquid / semi liquid form. Therefore, Mango Pulp is not covered by entry No. 16 of Schedule-II of Notification No.01/2014-Central Tax (Rate). Accordingly, classification of Mango Pulp and its coverage under this notification is rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been enacted and Customs Tariff Act, 1975 has been adopted for the purpose of classification of goods under GST. Whereas the rates of GST are charged on the basis Notification issued by the Government as per recommendations of GST Council. 4. Therefore, while observing the scope of applicability of rate in GST regime, it is required to examine the category of Fruit or of Fruit Pulp also, in absence of clear cut description of Mango Pulp. The classification may fall under either of following Chapter Heads: 1. Chapter 8: Edible fruit and nuts; peel of citrus fruit or melons 2. Chapter 20: Preparations of Vegetables, fruit, nuts or other parts of plant. 3. Chapter 22: Beverages, spirits and vinegar 5. Anyone of the following may be applicable for the sake of classification of Mango Pulp as there is no clear / specific description of Mango Pulp available in the GST Tariff: SCHEDULE- I: LIST OF GOODS AT NIL RATE: S. No. Chapter/Heading/ Subheading/ Tariff item Description of Good 1 0804 Dates, figs, pineapples, avocados, guavas, mangoes and m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, in GST regime the Chapter heading is confined to four digits only i.e.0804, and as such the concerned item may fall under nil rate of duty. Looking to the statement of facts and write up on Mango Pulp provided by the applicant, The Mango Pulp derived by the applicant would not be termed as FRESH as it would be available in market for long time and after being processed and packed. In SCHEDULE IV: LIST OF GOODS AT 5% RATE, the Chapter heading 0811 0812 are in relation to the Fruits and nuts... Chapter heading 0811-the description provided under GST tariff is Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter . That means the item should be: 1. Fruit or nut 2. Uncooked or cooked by steaming or boiling in water 3. Frozen and 4. whether or not containing added sugar or other sweetening matter. However, the item under dispute is Fruit, and it is uncooked, it also includes the process frozen as described by the applicant in para 3 of Annexure A, but it could not be called frozen in its acute state of /stage of supply. Hence, the question will arise that the item i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the goods viz. Mango Pulp merits classification under heading 0804 and falls within the ambit of entry No. 51 of the Notification No. 02/2017Central Tax (Rate), dated 28.06.2017, accordingly exempted from payment of GST. 6.1 For the sake of brevity, the entry No. 51 of the Notification No. 02/2017-Central Tax (Rate), dated 28.06.2017 is reproduced herein below: S. No. Chapter/Heading/ Subheading/ Tariff item Description of Good 51 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh. 6.2 From the above, it is clear that above entry confined to only Mangoes in fresh form. Whereas, Mango Pulp is obtained from mango fresh after carrying out process of cutting, de-stoning, refining and packing. Thus, Mangoes in fresh and Mango Pulp are not same one, as both are separately classified under different Chapter sub-headings of the Customs Tariff Act, 1985, read as under: Tariff Item Description of goods Unit Rate of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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