In re M/s. Hindustan Coca-Cola Beverages Private Limited (GST AAR Gujarat)
The product ‘Fanta Fruity Orange’ manufactured and supplied by M/s. Hindustan Coca-Cola Beverages Private Limited is classifiable under Tariff Item 2202 99 90 and Goods and Service Tax rate of 18% (CGST 9% + GGST 9%) is applicable to the said product as per Sl. No. 24A of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the CGST Act, 2017 and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017, as amended, issued under the GGST Act, 2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant M/s. Hindustan Coca-Cola Beverages Private Limited is engaged in the manufacture of aerated drinks and fruit pulp or fruit juice based drinks under different brand names, classifying the same under Chapter 22 of the First Schedule to the Central Excise Tariff Act, 1985.
2. The Applicant commenced manufacturing of a new product “FANTA FRUITY ORANGE” on 10th August, 2017 in its factory located at Village Goblej, Tal. Matar, Dist. Kheda- 387440, Gujarat and made first supply of said product on 24th August, 2017. The major ingredients for the manufacture of “FANTA FRUITY ORANGE” are Orange Juice consisting 10.5% fruit juice content, Carbonated Water, Sugar, Acidity Regulators, Preservatives, Stabilizers, Sweeteners, and Synthetic Food Colour. The manufacturing process starts with procurement of Orange juice concentrate from approved vendor and stored in -18 C cold storage which forms the base of product. This juice concentrate is then blended with sugar syrup which is prepared by mixing granulated sugar with treated water, additives and preservatives to form the beverage. Thereafter, this beverage is carbonated before being filled in bottles. It submitted the details of the ingredients used for the manufacture of “FANTA FRUITY ORANGE” and the process involved for manufacturing of the said product
3. The applicant has raised the following question for advance ruling –
Whether “FANTA FRUITY ORANGE” product is classifiable under CH 22029920 at Sl. No. 48 under Schedule – II as “Fruit pulp or fruit juice based drinks”, or under CH 22029990 at Sl. No. 24A under Schedule – III as “Other non-alcoholic beverages” or under 220210 at Sl. No. 12 under Schedule IV as “All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured” under Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 (as amended) and Notification No. 1/2017- State Tax (Rate) dated 30.06.2017 (as amended) ?
4.1 The applicant has submitted that the product “FANTA FRUITY ORANGE” with 10.5% Orange juice, would be classifiable under Tariff Item 2202 99 20 as “Fruit pulp or fruit juice based drinks” for the reasons given here under :
4.2 It is submitted that the product in question is undisputedly covered under tariff heading 2202, which deals with non-alcoholic beverages, other than fruit or vegetable juices, classified under the tariff heading 2009. Customs Tariff heading 2202 is reproduced below –
