In re Italian Edibles Pvt. Ltd (GST AAR Madhya Pradesh)
Q. Whether the product marketed under brand name Ber Berry, manufactured and supplied by the applicant, containing the ingredients jujube fruit sugar, salt, permitted preservative (E-211) and mixed spices, should be classified under the Tariff Heading 0810 as Jujube fruit (Ber/Bore) or under Tariff Heading 0811 as fruits cooked by steaming or under the Tariff Heading 2008 as fruits, otherwise prepared or preserved containing added sugar?
A. We observe that the chapter 8 is covered either fresh fruit or fruit cooked by steaming/boiling in water only whereas the process of the applicant is more than the process covered under chapter 0811. In the applicants case, after the product soaked in hot water, transferred to steamed jacketed tank where it is cooked with steam and at this stage other ingredients i..e. sugar salt, preservative and some spices are added. The process of manufacture of product of the Applicant is not simple to cover in the chapter 0811. The process of the applicant is preparation of fruit which contained preservative and other ingredients i.e. sugar, salt and some spices also. We find that as per the ingredients and process for manufacture of product in question given by the Applicant, the said product is not covered under the chapter 0811 and rightly classified/covered under the chapter heading number 2008 of the tariff.
We observe that the order No.01/AAAR/17/19/2018 passed by the Appellate Authority for Advance ruling, UP in case of Harith Budhraja (M/s Bharat Agro) is not applicable as in the instant case, the process of manufacture and ingredient of product i.e.”Bery Berry” is entirely different. The other referred judicial decisions is also not applicable in this case.
In view of above, we find that the product “Ber Berry”, is rightly classifiable under the chapter heading 2008.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,MADHYA PRADESH
PROCEEDINGS
(Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods & Service Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods and Services Tax Act, 2017 (hereinafter also referred to CGST Act and SCSI Act respectively) by M/S M/S ITALIAN EDIBLES PVT. LTD 309/1/8/8, BLOCK 3. MANGAL UDHYOG NAGAR, PALDA, INDORE, Indore, Madhya Pradesh, 452001(hereinafter referred to as the Applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE AND SUBMISSION OF THE APPLLICANT ARE AS UNDER :-
3.1 The applicant is engaged in the manufacture of an edible product under the brand name “Ber Berry”, and it contains the following ingredients:-
a. Jujube Fruit
b. Sugar
c. Salt
d. Permitted Preservatives
e. Mixed spices
3.2 The product consists of Jujube fruit commonly known as “Berphal” in India. It is basically the fruit itself which is packed in crushed/softened form and mixed with sugar and salt for flavouring. The steps involved in its preparation arc as below:-
3.2.1 Firstly, fresh jujube fruits arc sorted, cleaned, and then soaked in hot water.
3.2.2 The soaked fruit is then transferred to a centrifugal machine and then to a steam jacketed tank where it is cooked with steam. Al this stage the other ingredients i.e.. sugar, salt, preservatives, and some spices are added for flavouring.
3.2.3 Once the fruit is cooked, it is transferred to small containers of 20 kgs each for cooling, and then it is packed into small sachets of around 11 grams each.
3.3 That. the product is packed into small sachets of around 11 grams each. 60 such sachets arc packed into a larger pack for selling to the distributors and retailers. The end consumer would buy the small sachets and consume it after opening the same.
3.4 The product is in the form of the original jujube fruit itself which also contains the seeds and retains the essential taste and character of the fruit. It is cooked with the help of steam and mixed with sugar as a flavouring substance only.
4.Submission of the Applicant
STATEMENT CONTAINING THE APPLICANTS INTERPRETATION OF LAW AND/OR PACTS (I.E.. THE APPLICANT’S VIEWPOINT AND SUBMISSIONS ON ISSUES ON WHICH ADVANCE RULING IS SOUGHT)
The applicant submits that, in their view the product should be treated as a fruit classified under Tariff Heading 0810. The applicant following points, in support of their view:
A] The product is like the original fruitfully
1. The applicant submits that our product is essentially like jujube fruit only: and is also presented and marketed as such. It is just that the product has been prepared after treating the raw fruit to steam and adding some salt and sugar for flavouring purposes only. The process of steam treating and exposure to heal results in some pieces getting crushed, but otherwise the essential characteristics remain the same.
2. That merely healing / packing the fruit does not change its essential characteristics. The packed fruit still contains all the defining characteristics of the jujube fruit, such as it still contains the seed of the fruit and its outer peel, which signifies that the applicant has not processed the fruit resulting in any change in its essential nature and that the fruit remains clearly identifiable in the sachet. The addition of sugar and other spices is only undertaken to enhance its flavour and does not serve any other purpose,
3. The applicant believes that it should be classified under tariff item 0810 90 50. which is the appropriate classification for bore fruit also known as Jujube fruit.
B] The Applicant submitted that their product may also be classified as a fruit cooked by steaming or boiling in water, whether containing sugar or other sweetening matter
4. Applicant submitted that the said product should be classified as fruit but if the said product may not be classified as a raw/fresh fruit, then they submit that it may be classified under tariff heading 0811 as a fruit cooked by steaming containing sugar.
5. The Tariff Heading 0811 includes following products:
