Case Law Details
In re Sun Pharmaceutical Industries Ltd. (GST AAR Maharashtra)
Chapter heading 2106 of the Tariff specifically covers ‘Food preparations not elsewhere specified or included’ and in view of the submissions made by the applicant it is clear that ‘Prohance-D (Chocolate)’ is a food preparation which is meant to be consumed by people by dissolving the same in water or milk. It is thus, a “food preparation”, squarely covered under Chapter Heading 2106 of the Customs Tariff. We also find that both, the applicant as well as the jurisdictional officer are in agreement that the subject product falls under heading 2106 and we also have no doubt about the same. We however find that Prohance-D is a combination of various items as seen from the discussions above and can very clearly be treated as a compound preparation. This compound preparation is in powder form and can be consumed by direct mix with either water or milk. Further, the resultant beverage which is obtained after mixing the powder with water or milk is a non-alcoholic beverage and as such the Prohance- D will be clearly covered under the description ‘Compound preparations for making non-alcoholic beverages’ & therefore fall under Chap. Hdg 2106 90 50, thus attracting GST @ 18% as per Sch-III, Sr. No. 23.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Sun Pharmaceutical Industries Ltd., the applicant, seeking an advance ruling in respect of the following questions.
1. What is the appropriate classification of the Applicant’s product, Prohance – D (Chocolate)?
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