Case Law Details
Epicu Agro Products Pvt. Ltd. Vs Dy. Commissioner (State Tax) (Rajasthan High Court)
In M/s Epicu Agro Products Pvt. Ltd. v. Dy. Commissioner (State Tax) Circle – Anti Evasion & Anr. [S.B. Civil Writ Petition No. 9149/2021 dated August 24, 2021], the current petition has been filed against the notices issued by Dy. Commissioner (State Tax) Circle – Anti Evasion & Anr. (Respondent) which treated the beverage ‘Appy Fizz’ as a non-alcoholic beverage under the heading of 2202 99 90 making it liable to 18% Goods and Services Tax (GST).
M/s Epicu Agro Products Pvt. Ltd (“the Petitioner”) has relied on the case of CCE, Bhopal vs. Parle Agro Pvt. Ltd [CIVIL APPEAL NO.,6468, 6469, 6471, 6472 and 6470 OF 2017 dated May 09, 2017] which held Appy Fizz shall fall under the category of “fruit pulp and fruit juice based drink” under heading 2202 99 20 thereby being liable to GST at the rate of 12%.
The Hon’ble Rajasthan High Court has subsequently issued notice in the writ returnable on October 21, 2021. For the time being, has ordered stay on the notices issued in this context by the Respondent.
Our Comments
In the Pre-GST Era, there have been several rulings pertaining to stated issue which have been dealt as mentioned below:
1. In CCE vs Parle Agro Pvt. Ltd. [2008 (226) ELT 194 (Tri. Del) dated March 18, 2008], it was held that the drinks based on fruit juice are specifically classifiable under Heading No. 22029020 of the Tariff as the product in question contains 23% Apple Juice. The same was also affirmed by the Supreme Court.
2. In 2017, in the context of Value Added Tax (“VAT”), the case of CCE, Bhopal vs. Parle Agro Pvt. Ltd [CIVIL APPEAL NO.,6468, 6469, 6471, 6472 and 6470 OF 2017 dated May 09, 2017] which has been relied in the current petition, held ‘Appy Fizz’ as ‘fruit juice based drink’ under Entry 71 of Notification issued under Section 6(1)(d) of Kerala Value Added Tax Act, 2003 to be liable to tax at 12.5%.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
Learned counsel submits that as per the law laid down by Supreme Court, the Appy Fizz shall fall under the category of fruit pulp and fruit juice based drink, therefore the applicable GST tariff would be under heading of 2202 99 20, as Appy Fizz is a Fruit juice based drink, at the rate of 6% CGST and 6% SGST. However, the respondent/s have issued notices on 04.08.2021 treating the same as other non-alcoholic beverage under the heading of 2202 99 90 including tariff at rate of 9% CGST and 9% SGST. Notice in this regard has been issued for 2017-2018, 2018-2019, 2019-2020 and 2020-2021 up to 11.08.2021.
Learned counsel for the petitioner has taken this Court the order passed by CESTAT New Delhi, dated 18.12.2008 and order passed by Rajasthan Tax Board, Ajmer dated 22.06.2018 to submit that the GST payable Appy, Frooti and Appy Fizz is only as Fruit juice based drink.
Issue notice of the writ petition as well as stay application, returnable by 21.10.2021.
In the meanwhile and till further orders the effect and operation of notice dated 04.08.2021 (Annexure-1) for the years 2017-2018, 2018-2019, 2019-2020 and 2020-2021 up to 11.08.2021 shall remain stayed.
List on 21.10.2021.
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(Author can be reached at info@a2ztaxcorp.com)
Author Bio
Sir,
When same type of matter is earlier decidded by the Supreme court in CCE, Bhopal v. Parle Agro Pvt. Ltd. then it tantamounts to “Litigation resorted to for the sake of litigating” & is against the “National Litigation Policy” per recent case of Interglobe Aviation Ltd. v. Union of India & Ors.(2021) 36 J.K.Jain’s GST & VR 78 (Delhi).
Such type of practices should be stopped to avoid unnecessary for harassment of assessee.
CA Om Prakash Jain s/o J.K.Jain, Jaipur
Tel:9414300730