In re M/s Gitwako Farms India Pvt. Ltd. (GST AAR Rajasthan)
What is the classification when the Frozen Chicken is sold in packaged form and it’s HSN code?
The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 02071200.
Whether frozen chicken as sold by the company is exempt under Entry No. 9 of Not. No. 02/2017-CT(R)?
The Frozen Chicken supplied by the applicant is not exempted under Entry No. 9 of Notification No. 02/2017-CT(Rate) dated 28.06.2017(as amended from time to time).
Read AAAR Ruling- GST on supply of Branded Frozen Chicken to Indian Armed & Paramilitary forces
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/ RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/ RGST Act, 2017, within a period of 30 days from the date of service of this order.
The issue raised by M/s Gitwako Farms India Pvt. Ltd., Opp. Alwar Public School, Village- Kesarpur, Alwar, Rajasthan 301001 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a)(b) given as under :
a. Classification of any goods or services or both;
b. Applicability of a notification issued under the provisions of the act;
Further, the applicant being a registered person (GSTIN is 08AAACG1096K1ZH as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling.
1. SUBMISSION AND INTERPRETATION OF THE APPLICANT:
a. The applicant is private limited company incorporated in India having GSTIN 08AAACG1096K1ZH.
b. It is one of the food processing companies having multiple production facilities across India. The company has its processing facilities at Opp. Alwar Public School, Village- Kesarpur, Alwar, Rajasthan 301001.
c. The applicant is manufacturer of frozen and tinned products and is a registered supplier to the Indian Armed and paramilitary forces for around four decades.
d. The company is supplying frozen chicken to the Indian Armed and ;,/paramilitary forces. The work order awarded to the company clearly provides for supply of a specified amount of weight of chicken dressed chilled / frozen over as specified period of time.
e. As process of its supply, the bird is slaughtered and its carcass is processed, sealed and delivered in its natural shape. The processed carcasses are of different weights and sizes and vary from one animal to another. Each dressed chicken (broiler) carcass subsequent to chilling and before freezing shall be individually packed in to primary package Viz. suitable size oxygen-water impermeable, heat shrink, food grade colourless LDPE bags of minimum 200 gauge/50 micron.
f. The LDPE bags are then put in to a dust and moisture proof and heat resistant food grade secondary package (HDPE Bag). On HDPE bags, contents (including product name, firm’s name and brand, net weight (if required), batch number/ lot number and instructions for consumptions and preservation of such chicken) are printed. The package is specifically mentioned for Defence Personnel Only. Frozen chicken is then delivered in temperature controlled refrigerated vans with data logger installed for continuous monitoring of frozen chicken.
2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
a. What is the classification when the Frozen Chicken is sold in packaged form and it’s HSN Code?
b. Whether frozen chicken as sold by the company is exempt under Entry No. 9 of Notification No. 02/2017-CT(R)?
3. PERSONAL HEARING
In the matter personal hearing was granted to the applicant on 03.04.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Gaurav Gupta (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the application and also submitted additional documents. He further requested that the case may be decided at the earliest.
4. COMMENTS OF THE JURISDICTIONAL OFFICER
The jurisdiction officer (Assistant Commissioner, CGST Division-A, CGST Alwar Commissionerate, 1 Old Industrial Area, Behind Railway Station, Alwar, Rajasthan 301001) has submitted vide letter dated 18.03.2019 which can be summarized as under:-
The tax payer has to pack each dressed chicken individually into suitable sized LDPE bag. The packed chicken (broiler) carcass has to be then packed into dust proof, moisture and heat resistant food grade HDPE bags with thermal stability of minus 50 degree Celsius to plus 60 degree Celsius, capable of holding 10Kg to 20Kg or suitable plastic crates. Therefore, the quantity of dressed chicken (broiler) carcass to be packed individually is predetermined in this case. Hence, tax exemption is not available to the taxpayer.
5. FINDINGS, ANALYSIS & CONCLUSION:
a. The applicant is supplying frozen chicken to the Indian Armed and paramilitary forces. The work order awarded to the applicant is for supply of dressed frozen chickens over specified period of time in Kgs.
b. In the process, the bird is slaughtered and its carcass is processed, sealed and delivered in its natural shape. The processed carcass is of different weight and size and varies from one to another. Each dressed chicken (broiler) carcass subsequent to chilling and before freezing shall be individually packed in a primary package viz. suitable size oxygen-water impermeable, heat shrink, food grade colourless LDPE bags of minimum 200 gauge/50 micron.
c. Further certain numbers of LDPE bags are packed in a dust and moisture proof and heat resistant food grade secondary package (HDPE Bag) so as to weigh between 10 to 20kgs. On every HDPE bag, the contents – product name, firm’s name, brand name, net weight, batch number/lot number, instructions for consumptions and preservation of such chicken along with remark “For Defence Service Only” are printed. Frozen chicken is then delivered through temperature controlled refrigerated vans with data logger installed for continuous monitoring of frozen chicken.
d. Frozen chicken in meat form is covered under Chapter 2 of Section I heading Live Animals, Animal Products of Customs tariff Act, 1975. The relevant portion of the said entry is as under:-
