Case Law Details
In re Seetharamnjaneya Dal and Fried Gram Mill (GST AAR Andhra Pradesh)
AAR held that GST not applicable on supply of 1 kg packing red gram dall secondary packing in 50 kg bag to the AP State Civil Supplies Corporation Limited, Vijayawada as per the design and label given by the corporation with a prior agreement.
In the instant case, the applicant is supplying red gram dall to the corporation in 1 kg packaging and secondary packaging in 50 kg bag. It is also contended by the applicant that AP State Civil Supplies Corporation Limited being an institution which supplies essential commodities under public distribution system, the above supply is not an ‘Institutional supply’ and is not exempted by rule 3(B).
The questions whether the primary pack of less than 25 Kgs, but are secondary packed in a pack above 25 kgs are covered by Legal Metlorgy Act or Not? Or whether the supply to AP Civil supplies is Institutional supply or Not are to be decided in the backdrop of the provision of Legal Metrology Act, but not under GST.
Be that it may, the first and foremost condition of taxability is that the commodity should have been a pre-packed commodity which means that the commodity is not packed for any specific known buyer. In the Instance case the applicant is packing the commodity at the behest and at the specific instructions of the buyer, ie., AP State Civil Supplies Corporation Limited. It is clearly evident from the package that the AP State civil have made very clear instruction as to the color, theme, transparency and the details to be printed on the package. Thus the commodity is packed for retail sale for any buyer who may purchase at a later point, but it is packaged to a specific buyer. Thus the first and foremost condition of taxability is not satisfied. Hence there is no question of taxability of the commodity in the instant case. In view of this the discussion as primary / secondary packaging or Institutional supply is nothing but infructuous.
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