Case Law Details
In re Kartik Pinakin Bhatt [Trade Name: Ace Multitechs] (GST AAR Gujarat)
The applicant, a GST-registered manufacturer based in Gujarat, sought an advance ruling regarding the classification and applicable GST rate on its range of mouth freshener products marketed under the brand “KAPSUL.” The products include Paan Kapsul (Silver Coated), Paan Kapsul (Regular), Paan Kapsul (Rose), ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GasGo Candy. The applicant manufactures the first three products by mixing ingredients and filling them into edible plant-based capsules, while the remaining five products are purchased in finished form and only packed or repacked.
For Paan Kapsul variants, the ingredients include betel leaves, gulkand, raw supari (unscented), sugar syrup, flavored plant-fiber capsules, aniseeds, and menthol, with silver leaves additionally used in the Silver Coated variant. The manufacturing process involves mixing the ingredients into a homogeneous mass, filling them into capsules, inspection, and blister packaging. The other products contain ingredients such as dry mango powder, pudina, dry ginger, cumin, amla, salt, black pepper, and other spices. These are packed or repacked without further processing.
The applicant sought clarification on the appropriate HSN classification and GST rate, particularly since the raw materials attract different GST rates. During the hearing, samples were examined and detailed ingredient lists and manufacturing processes were submitted.
The Authority observed that the products fall into two categories: (i) products manufactured by mixing ingredients and filling into edible capsules, namely Paan Kapsul (Silver Coated), Regular, and Rose; and (ii) products that are purchased in finished form and only packed or repacked, namely ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GasGo Candy.
With respect to the Paan Kapsul variants, the Authority referred to the Supplementary Notes of Chapter 21, which define “Betel nut product known as Supari” as any preparation containing betel nuts but not containing lime, katha (catechu), or tobacco. Since the products contain raw supari and menthol but do not contain lime, katha, or tobacco, they were held to be classifiable under Chapter 21, specifically HSN 2106 90 30 as “Betel nut product known as Supari.”
For the second category of products, the Authority noted that these are consumed after meals and contain ingredients that fall under spices. However, relying on judicial precedents including the decision in Commissioner of Central Excise, Jaipur-I vs. Vinod Kumar & Bros (P) Ltd., the Authority observed that similar products were held not to be “spices” under Chapter 9, as they are not used as condiments but marketed and understood as digestive tablets. The Supreme Court had dismissed the appeal against that Tribunal decision. Additional Supreme Court judgments were cited to emphasize that goods must be classified based on popular and commercial understanding.
Applying this principle, the Authority found that the products ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GasGo Candy are understood in trade and common parlance as digestive products or aftermints, not as spices. Accordingly, they were held to be classifiable under HSN 2106 90 99 as “Food preparations not elsewhere specified or included.”
On the issue of GST rate, the Authority referred to Sl. No. 145 of Schedule I of Notification No. 9/2025-CT(R) dated 17.09.2025, which prescribes GST at 5% for goods under HSN 2106 (other than Pan Masala under 21069020). Since all eight products fall under HSN 2106 (either 2106 90 30 or 2106 90 99), the Authority ruled that all will attract GST at 5%.
Accordingly, the ruling held that Paan Kapsul variants are classifiable under HSN 2106 90 30 and the remaining products under HSN 2106 90 99, with GST payable at 5% on all products.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
M/s Kartik Pinakin Bhatt , 701/A/2, Ace Multitechs, V U Nagar, GIDC Estate, Anand, Gujarat-388121 [for short — ‘appliance] is registered under GST and their GSTIN is 24ADCPB9847P1Z4.
2. The applicant is a manufacturer of various type of Mouth Freshener including mukhwas in a unique capsule form under the brand name “KAPSUL”. The main content of the capsule is plant based, which is .100% vegetarian, gelatine free and nicotine free. Their products are Paan Kapsul (Silver Coated), Paan Kapsul (Regular), ChatPata Twins, Ginger Shots, Gas Go Candy, Tangy Twins, Amla Shots etc. As per the applicant, the unique idea of Mukhwas in a capsule form is developed by them and has been launched by them for the first time in India. In view of the uniqueness of the product, no specific description is found in the HSN. Further some of the products are mixed and packed only. In other words, the raw material is only packed in capsules and no processing is done on it.
3. The major inputs, their HSN and the rate of GST are as under: –
| HSN | Raw Materials | CGST % | SGST % |
| 210690 | Pan Gulkand with Supari | 9 | 9 |
| 71069210
|
Silver Leaves (various size) |
1.5 | 1.5 |
| 33021010 | Permitted Food colours and flavours |
9 | 9 |
| 29061100 | Menthol | 9 | 9 |
| 21069099 | Hing Goli
|
6 | 6 |
| 21069099 | Dried Salted Amla | 6 | 6 |
| 21069099 | Pudina Mint Gol | 6 | 6 |
| 091020 | Dried Salted Ginger | 6 | 6 |
| 21069099 | Digestive Goli | 2,5 | 2.5 |
| 21069070 | Churns for Pan | 2.5 | 2.5 |
| 091020 | Saffron | 2.5 | 2.5 |
| 090921 | Dhana Dal | 2.5 | 2.5 |
4. They have sought an advance ruling on the following questions: –
(a) Classification of the goods and services by its relevant Harmonized System of Nomenclature (IISN) and Services Accounting Code (SAC) specifically of our product described in point no. 12(B).
(b) Classification of Tax liability (GST Rate) to be charged in Tax Invoice on our final product, as the major input raw materials are in mixed slab of GST rate.
5. Personal hearing was granted on 04.12.2025 wherein Shri Chintan Jayant Kumar Darji, Authorised Representative appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. The applicant has also showed us the samples of the products in question during the course of hearing. As the application did not mention the raw materials used in each of the product in question on which the applicant has sought the advance ruling, they were asked to submit the details of raw materials or each product for which they have sought the advance ruling along with their manufacturing process. The applicant vide letter dtd.
08.12.2025 has submitted the details as under: –
1) Product Name: Paan Kapsul – Silver Coated
A) Ingredients are used to manufacture the product:
a) Paan – Betel Leaves
b) Gulkand
c) Raw Supari (Unscented)
d) Sugar Syrup
e) Silver Leaves
f) Paan flavoured Capsules (Plant Fiber)
g) Aniseeds
h) Menthol
B) Process of Manufacturing: A mixture of Paan, Gulkand, Supari and sugar syrup is procured from the supplier. It is tested for quality. After approval it is properly mixed until the mixture becomes fully homogeneous. Silver Leaves are wrapped on the bolus before filling in the capsules. The it is filled in Paan flavoured capsules on a capsule filling machine. The capsules are inspected on inspection machine and then cleared for packing. It is then packed on blister packing machine. There after the paper sleeves are inserted on the blister packing which indicated the batch number of manufacturing
2) Product Name: Paan Kapsul – Resmlar
A) Ingredients are used to manufacture the product:
a) Paan – Betel Leaves
b) Gulkand
c) Raw Supari (Unscented)
d) Sugar Syrup
e) Paan flavoured Capsules (Plant Fiber)
f) Aniseeds
g) Menthol
B) Process of Manufacturing: A mixture of Paan, Gulkand, Supari and sugar syrup is procured from the supplier. It is tested for quality. After approval it is properly mixed until the mixture becomes fully homogeneous. The it is .filled in Paan flavoured capsules on a capsule filling machine. The capsules are inspected on inspection machine and then cleared for packing. It is then packed on blister packing machine. There after the paper sleeves are inserted on the blister packing which indicated the batch number of manufacturing
3) Product Name: Paan Kapsul – Rose
A) Ingredients are used to manufacture the product
a) Paan – Betel Leaves
b) Gulkand
c) Raw Supari (Unscented)
d) Sugar Syrup
e) Rose flavoured Capsules (Plant Fiber)
f) Aniseeds
g) Menthol
B) Process of Manufacturing: A mixture of Paan, Gulkand, Supari and sugar procured from the supplier. It is tested for quality. After approval it is properly mixed until the mixture becomes fully homogeneous. The it is filled in Rose flavoured capsules on a capsule filling machine. The capsules are inspected on inspection machine and then cleared for packing. It is then packed on blister packing machine. There after the paper sleeves are inserted on the blister packing which indicated the batch number of manufacturing.
4) Product Name: ChatPata Twins
A) Ingredients are used in the product:
Purchased by us separately in a tablet form, which contain Salt, Dry mango, Pudina, Dry Ginger, Neembusaat, Nausadar, Cumin, Peeplamool.
B) Process of Manufacturing: Packing & Repacking.
5) Product Name: Tangy Twins
A) Ingredients are used in the product: Purchased by us separately in a tablet form, which contain Sugar, Pomegranate Seeds, Dry mango, Salt, Black Pepper, Dry Ginger, Orange Powder, Red Chilli.
B) Process of Manufacturing: Packing & Repacking.
6) Product Name: Ginger Shots
A) Ingredients are used in the product: Purchased by us separately, which contain Dry Ginger, Salt, Neembusat, Dry mango, Black ,S’alt, Nausadar, Starch, Peeplamool.
B) Process of Manufacturing: Packing & Repacking.
7) Product Name: Amla Shots
A) Ingredients are used in the product: Purchased by us separately, which contain Amla, Salt, Black Salt, Celery Powder, Pepper Long.
B) Process of Manufacturing: Packing & Repacking
8) Product Name: GasGo Candy
A) Ingredients are used in the product: Purchased by us separately in a tablet form, which contain Mari, Sunth, Pepper, Chitramul, Chavak, Piprimul, SambarLun, Bidlavan.
B) Process of Maniffcturing: Packing & Repacking.
Product at serial no. 1 to 3 are manufactured by us and product serial no. 4 to 8 are only packed & repacked by us.
6. A letter dtd. 01/12/2025 was received from the Assistant Commissioner-I, SGST, Unit-51, Anand, wherein they have submitted that the applicant assembles items of mukhvas and creates a new product, which can be classified as `mukhvas’ under HSN 21069099. Other products like ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots and GasGo Candy are resold in different packing and can be classified as `mukhvas’ under HSN 21069099.
Discussion and findings
7. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.
8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant’s submission/interpretation of law in respect of question on which the advance ruling is sought.
9. After going through the samples produced before us during the course of hearing, we find that the applicant is manufacturing two types of products based on the process of manufacture. In the first type, the ingredients are mixed together and packed in edible capsules, which are then packed in blister packs. In the second type, the finished product is bought from the market and the applicant only packs them in capsule sized blister packing. No capsule is present in the second category. The products falling in the first category are- Paan Kapsul – Silver Coated, Paan Kapsul — Regular and Paan Kapsul — Rose and those falling in the second category are – ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots and GasGo Candy.
10. We find that applicant is manufacturing Mouth Fresheners, commonly known as Mukhwas’ in the vernacular language. They have evolved a unique concept, wherein the mouth freshener is packed in edible capsules, which can be consumed as a whole. As per the manufacturing process submitted by the applicant for Paan Kapsul – Silver Coated, Paan Kapsul — Regular and Paan Kapsul — Rose, the ingredients are almost similar with the minor difference being different flavours of the capsules, with the additional presence of Silver leaves in Paan Kapsul – Silver Coated. In all the three types of products, the common ingredients arc Paan – Betel Leaves, Gulkand, Raw Supari (Unscented), Sugar Syrup, Paan flavoured Capsules (Plant Fiber), Aniseeds, Menthol.
11. As per the Supplementary Notes of Chapter 21- ‘Betel nut product known as Supari’ means any preparation containing betel nuts, but not containing any one or more of the following ingredients, namely: lime, katha (catechu) and tobacco, whether or not containing any other ingredients such as cardamom, copra or menthol. We find that Paan Kapsul – Silver Coated, Paan Kapsul — Regular and Paan Kapsul — Rose has raw supari (betel nuts) as one of the ingredients as well as menthol and does not contain lime, katha (catechu) and tobacco. Therefore, these products would merit classification under Chapter 21, more specifically HSN 2106 90 30 – Betel nut product known as Supari. We also find that the Advance Ruling Authority in the case of Re: PREM GI IAN PRODUCTS [ 2019 (20) G.S.T.L. 796 (A.A.R. – GST) has held that Mouth freshener (obtained by mixing various inputs/raw materials like kharak, sugar, khopra, sounf, fennel, dates, mishri, saccharin, menthol, papaya fruit, or natural flavouring substances), will merit classification under Chapter Heading 2106 of the GST Tariff as ‘Food preparations not elsewhere specified or included’ .
12. Coming to the second set of products which are only packed or repacked by the applicant, we find that these products are usually consumed after meals to aid digestion. The main ingredients in ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GoGas Candy are Dry Mango powder, Pudina, Dry Ginger, Cumin, Orange powder, Amla, Salt, black pepper, red chilli, Mari, Sunth, Pepper, etc. which fall under the category of spices. We find that the CESTAT in Commissioner of Central Excise, Jaipur-I Vs Vinod Kumar & Bros (P) Ltd. reported in 2004(174) ELT 403 (Tri-Del) has dealt with similar products having similar ingredients, which are reproduced below: –
| Sl. No. | Name of the Item | Contents | Process Undertaken |
| 1 | Pather Hazam Churan | Dry mango, pepper, cumin, dry ginger, akarkara, salt, black salt, citric, etc. | Churan is made by grinding process and moisturisation |
| 2 | Churan Anardana | Pomegranate, pepper, cumin, akarkara, dry ginger, dry mango, large cardamom, rose petals, salt, sugar, citric, etc. | Same as above |
| 3 | Punch Anardana | Pomegranate, pepper, cumin, akarkara, dry ginger, dry mango | Same as above |
| 4 | Anardana Goli | Pomegranate, pepper, cumin, dry ginger, dry mango, black salt, sugar, citric acid | Same as above |
| 5 | Rochak Anardana | Pomegranate, pepper, cumin, akarkara, dry ginger, dry mango, large cardamom, rose petals, salt, sugar, citric, etc. | Same as above |
| 6 | Anardana Special | Pomegranate, pepper, cumin, akarkara, dry ginger, dry mango, large cardamom, cinnamon, celery, black salt, sugar, citric, etc. | Same as above |
| 7 | Heeng Ki Tikiya | Asafoetida, pomegranate, akarkara, dry ginger, dry mango, salt, sugar, citric, etc. | Same as above |
| 8 | Jeera Goli Special | Roasted cumin, dry mango, cumin, salt, pepper, dry ginger, pepper long, citric, etc. | Grinded and coated on cumin |
| 9 | Jeera Goli | Roasted cumin, dry mango, cumin, salt, pepper, dry ginger, pepper, black salt, sugar, etc. | Same as above |
| 10 | Jeera Goli-II | Roasted cumin, dry mango, cumin, salt, pepper, dry ginger, pepper, black salt, etc. | Grinded and coated on cumin with solution of gur |
| 11 | Jeerawati | Cumin, akarkara, dry mango, salt, pepper, dry ginger, black salt, sugar, etc. | Grinded, mixed and moisturised |
| 12 | Jeeron | Cumin, salt, pepper, akarkara, dry mango, dry ginger, black salt, etc. | Grinded, mixed to make tablets |
| 13 | Hazma Hazam | Roasted cumin, cumin salt, pepper, dry mango, dry ginger, black salt, etc. | Grinded, mixed and coated on cumin to make Churan Goli |
| 14 | Gat Hazam | Roasted cumin, cumin salt, pepper, dry mango, dry ginger, black salt, etc. | Grinded, mixed and coated on cumin to make Churan Goli |
| 15 | Aam Wati | Dry mango, dry ginger, cumin, black salt, pepper, sugar, etc. | Grinded and mixed to make tablets |
| 16 | Hapus | Dry mango, dry ginger, cumin, black salt, pepper, sugar, etc. | Grinded, mixed to make tablets |
| 17 | Orangi | Dry mango, dry ginger, chilly, salt, black salt, pepper, sugar, etc. | Same as above |
| 18 | Punch Lamina | Pepper long, akarkara, dry ginger, pepper, asafoetida, cumin, dry mango, salt, black salt, nausadar, sugar, citric, etc. | Same as above |
| 19 | Neembu Wati | Pepper long, akarkara, dry ginger, pepper, cumin, dry mango, salt, black salt, nausadar, citric, etc. | Same as above |
| 20 | Neembu Punch | Pepper long, akarkara, dry ginger, pepper, cumin, dry mango, salt, black salt, nausadar, citric, etc. | Same as above |
| 21 | Heeng Wati | Asafoetida, akarkara, dry ginger, pepper, cumin, dry mango, salt, nausadar, citric, food colours, etc. | Same as above |
| 22 | Heeng Wati Special | Asafoetida, akarkara, dry ginger, pepper, cumin, dry mango, salt, nausadar, citric, food colours, etc. | Same as above |
| 23 | Heeng Wati Extra Strong | Asafoetida, akarkara, dry ginger, pepper, celery, salt, nausadar, citric, sugar, etc. | Same as above |
| 24 | Heeng Gola | Asafoetida, akarkara, dry ginger, pepper, celery, salt, nausadar, citric, etc. | Same as above |
| 25 | Podina Wati | Dry mint, cumin, dry ginger, pepper, celery, dry mango, salt, nausadar, citric, etc. | Grinded and mixed to make tablets |
| 26 | Sonth Wati | Akarkara, dry ginger, pepper, dry mango, salt, black salt, etc. | Same as above |
| 27 | Peepal Wati | Akarkara, dry ginger, pepper, dry mango, salt, black salt, pepper long, nausadar, etc. | Same as above |
| 28 | Ajnol | Dry mango, salt, black salt, celery, dry amla, chilly, citric, etc. | Same as above |
| 29 | Dayonin | Asafoetida, pepper long, dry mango, pepper, dry ginger, salt, black salt, citric, etc. | Same as above |
| 30 | Shodhy Harad | Dry mango, terminalia chevula, amla, celery, nausadar, akarkara, salt, black salt, citric, etc. | Same as above |
| 31 | Harad Hand-made | Dry mango, terminalia chevula, amla, celery, nausadar, akarkara, salt, black salt, citric, etc. | Same as above |
Before the_ Tribunal, the question was whether these products would merit classification under lIeading 9.03 as ‘Spices’ or Chapter heading 2108.99, being `edible preparations, not elsewhere specified or included’, as it existed at the material time. The Tribunal, after going through the Chapter Notes of Chapter 9 held that spices are those which are used as condiments, Further, as per the dictionary meaning, a condiment is a substance used either during the preparation of food or it is added to the prepared food on the table in order to add a certain flavour or a taste. It has, thus, an integral relation to the food prior to its consumption. The products are being marketed/sold by the respondents are not as spices but as digestive tablets, which cannot be called as a condiment. Therefore, they cannot be called as spices. The appeal filed against the judgement of the Tribunal was dismissed by the Supreme Court (Civil Appeal No. 8050/2004). We further find that in Jalani Enterprises Vs CCE, Jaipur reported at 2001 (132) E.L.T. 422 (Tri. – Del.), the Tribunal while dealing with the classification of ‘faOra’ held that though it is prepared by adding some spices, it cannot be said to be ‘Masala’ as it is never understood or accepted as a spice or condiment but as a drink both in trade parlance as well as common parlance. The Tribunal, therefore, classified it under Sub-heading 2108.99(branded) and 2108.91 (unbranded) and not under Chapter 9 as Spices.
13. We find that the Supreme Court in Shree Baidyanath Ayurveda Bhavan Ltd. CCE, Nagpur – 1996 (83) E.L.T. 492 (S.C.), has held that goods are to be classified according to the popular meaning attached to them by those using the product. Similarly, in Novopan India Ltd v. Collector – 1994 (73) E.L.T. 769 (S.C.), the Supreme Court held that commercial understanding is the– true test and not what scientific books like Encyclopaedia Britannica may say. In Purewal Associates Ltd v. CCE – 1996 (87) E.L.T. 321 (S.C.), the Apex Court held that goods are to be classified as per trade understanding. We find that the products manufactured by the applicant are commonly understood as products aiding digestion and marketed by the applicant as aftermints’ . We also find that the Tribunal in Vinod Kumar & Bros (P) Ltd., supra, has for similar products manufactured by the applicant, classified it under Chapter heading 2108.99, being ‘edible preparations, not elsewhere specified or included’. However, we find that in the GST Tariff, HSN 2108 has been replaced by HSN 2106, being — ‘Food preparations not elsewhere specified or included’. Therefore, we are of the opinion that these products i.e. ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GoGas Candy would merit classification under HSN 2106 90 99 as Food preparations not elsewhere specified or included’.
14. The next question by the applicant is the rate of GST applicable on the products in question. As discussed supra, Paan Kapsul – Silver Coated, Paan Kapsul — Regular and Paan Kapsul — Rose would merit classification under HSN 2106 90 , 30 and ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GoGas Candy would merit classification under HSN 2106 90 99. As per Si. No. 145 of Schedule-I of Notification No. 9/2025-CT(R) dtd. 17.09.2025, goods falling under HSN 2106 (other than 21069020-Pan Masala) will attract GST @ 5%. Therefore, the eight products in question for which the applicant has sought advance ruling will attract GST @ 5%.
15. In view of the foregoing, we rule as under: –
RULING
Q.1 Classification of the goods and services by its relevant Harmonized System of Nomenclature (HSN) and Services Accounting Code (SAC) specifically of our product described in point no. 12(B).
Q.2 Classification of Tax Liability (GST Rate) to be charged in Tax Invoice on our final product, as the major input raw materials are in mixed slab of GST rate.
Ans 1 & 2: Paan Kapsul – Silver Coated, Paan Kapsul — Regular and Paan Kapsul — Rose would merit classification under HSN 2106 90 30 and ChatPata Twins, Tangy Twins, Ginger Shots, Amla Shots, and GoGas Candy would merit classification under HSN 2106 90 99. All these products will attract GST @ 5%
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