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TMI Blog2023 (2) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of ready to eat and ready to cook food products, the same are covered under explanation 5(b) which is preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption. Thus the food products manufactured by the applicant are covered under tariff heading 2106 and hence exigible to GST at 18% (CGST 9% and SGST 9%) as per entry No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate), dated 28.06.2017. - KAR ADRG 11/2023 - - - Dated:- 21-2-2023 - DR. M.P. RAVI PRASAD AND SRI. KIRAN REDDY T, MEMBER Represented by : Sri Sagar Dighe, CEO and Ms Parul, Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. SATS Food Solutions India Private Limited, Cool Port Building, AIR India SATS Airfreight Terminal, Bangalore International Airport Limited, Devanahalli, Bengaluru-560300 (hereinafter referred to as The applicant'), having GSTIN 29ABGCS3156B1ZF have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice treats, international cuisines, Indian and western desserts, bakery products etc. SFSI will supply the products in Bulk Industrial Packs in B2B space to companies who will then further sell it to its end consumers in consumable format by way of thawing, assembling, re-packaging and handling etc. The applicant states that the food products of SFSI cannot be sold in its true state to retail customers without further processing and handling activities such as cooking, thawing or heating. 5.5 The applicant has stated the key aspects of the supplies made by SFSI as below:- 1. Products are in frozen condition at -40 (minus 40) to -50 (minus 50) deg Celsius and are not fit for immediate human consumption. 2. Frozen products are supplied to businesses and not to retail customers. 3. Frozen products are supplied in bulk to businesses with minimum order quantities of 1 tonne or above and individual packaging sizes of 5 kgs and above. 4. No MRP is printed or applicable on the products supplied to businesses. 5. Frozen products have long shelf life, ranging from 6 to 18 months and are to be stored at minimum -18 (minus 18) degree Celsius 6. The frozen produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convert it into a form fit for human consumption and sell to retail consumers. Also, the products coming out of SFSI production plan have longer shelf life as they are stored in -18 degree Celsius. But once the B2B businesses process and sell to retail customers, the products have a shelf life of not more than 4-24 hours. d) Frozen Semi Processed Food Products Semi Processed Food Products are Frozen Ready to Cook Foods(RTC) which need preparation like thawing, cooking, and addition of vegetables / protein at institutional buyer's end, repacking, reportioning, and reconstitution to convert this into ready to eat finished food products, e.g., Pasta Sauce needs to be thawed, and cooked along with addition of pasta and vegetables to prepare a dish. Also, the products coming out of SFSI production plan have longer shelf life as they are stored in -18 degree Celsius. But once the B2B businesses process and sell to retail customers, the products have a shelf life of not more than 4-24 hours. 5.7 The applicant has stated that since SFSI do not supply the products directly to end consumers over the counter, their activity is not a 'restaurant service' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by their authorized representative and also their submissions made during the time of hearing. 10. The applicant states that they are engaged in the business of manufacture/production and supply of frozen food in institutional packs to companies in Aviation Industries, quick service restaurants, Hotels etc., across Ready To Eat (RTE)/ Ready To Cook (RTC)/ Processed and Semi Processed categories. The applicant states that most of the food items manufactured by SFSI are classifiable either under HSN Code 2007 or under HSN Code 2106 90 99- other food preparation not elsewhere specified or included and is liable to GST at the rate of 12% or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup 2106 90 50 --- Compound preparations for making nonalcoholic beverages 2106 90 60 --- Food flavouring material 2106 90 70 --- Chuma for pan 2106 90 80 --- Custard powder --- Other: 2106 90 91 ---- Diabetic foods 2106 90 92 ---- Sterilized or pasteurized millstone 2106 90 99 ---- Other 13. Further, explanatory notes pertaining to tariff heading 2106 says as below: 5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes,- (a) protein concentrates and textured protein substances; (b) preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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