In re M/ s. S.P. Jeyapragasam(HUF) (GST AAR Tamilnadu)
Applicant seek ruling on following grounds-
1. What is the rate of tax and HSN Code for fruit beverages or drinks with HSN Code?
2. The definition under the FSSAI Act in section 2.3.3.A can be taken as an aid to classify the product? If so kindly clarify.
3. Is there any persevered percentage of fruit or pulp in the beverages to call them as carbonated fruit beverages or drinks under the GST Act.
Later The applicant in their undated memo received by AAAR on 17th July 2019 submitted that they are not willing to proceed further in the said application due to personal reasons and therefore withdraw their application in AAR No. 15/2019 and requested to withdraw their application. The applicant appeared in the personal hearing and reiterated their willingness to withdraw their application. Therefore, the applicant is allowed to withdraw their application and ordered accordingly
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING TAMILNADU
Note : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. S.P. Jeyapragasam (HUF) No: 76, Amman Sanathi, Madurai – 625 001. (hereinafter referred to as ‘Applicant’) is a registered taxable person. They are registered under GST vide GSTIN No. 33AAJHS5092M1ZL. The Applicant has preferred an application seeking Advance Ruling on the following Question:
1. What is the rate of tax and HSN Code for fruit beverages or drinks with HSN Code?
2. The definition under the FSSAI Act in section 2.3.3.A can be taken as an aid to classify the product? If so kindly clarify.
3. Is there any persevered percentage of fruit or pulp in the beverages to call them as carbonated fruit beverages or drinks under the GST Act.
The Applicant has submitted the copy of application in Form GST ARA – 01 and submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under Sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2. The applicant in the statement of facts has stated that they are going to manufacture beverages with fruit juices and without milk. Some of the industries in this field informed that fruit pulp or fruit juice based drinks fall under HSN Code 22029020 liable to be taxed at 12%. Recently the fruit juice based drinks shall be called as “Carbonated beverage with fruit juice” as per the definition available under the FSSAI Act. The relevant definition is extracted below:
“3A. In case the quantity of fruit juice is below 10.0 percent, but not less than 5.0 percent (2.5 percent in case of lime or lemon), the product shall be called `Carbonated beverage with fruit juice and in such cases the requirement of TSS (Total Soluble Solids)shall not apply and he quantity of fruit juice shall be declared on the label”.
Hearing:
3. The applicant was heard on 28.03.2019. They appeared and gave a written submission. They stated that they are intending the manufacture through 3rd party a fruit juice based aerated drink. They stated that they will submit accredited laboratory testing, FSSAI or State Government Notification along with samples, procurement invoices/agreement for the product which they intend to sell in two weeks time. Another hearing is requested in this case. The Jurisdiction central Authority submitted that if fruit content is less than 10% it should be 22021010 at 28% and more than 10% as 22029920 @12%.
3.1 In the written submissions, the applicant has inter-alia stated that:-
> they are going to manufacture fruit drink/fruit juice without adding milk. The following will be the method of preparation of carbonated beverages with fruit juice.
MANUFACTURING PROCESS;
Processing RO Water —————> Preparation of sugar Syrup Solution —————-> Thermal Process ————-> Add Concentrate (Recipe) ————> Add Thermally Processed fruit Juice Concentrate ——————->Blending ————> Carbonization ————->Filling ———————> Capping ————–>Labelling ————–> Shrink Wrapping
The ingredients of the manufactured carbonated fruit juice as follows:
