2018 (6) TMI 624 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (14) G. S. T. L. 141 (A. A. R. – GST), [2018] 2 GSTL (AAR) 82 (AAR) – Classification of goods – Ice Cream Making Machines – rate of GST – Whether the aforesaid goods fall under Chapter Heading 8438 of GST Tariff? – Whether the applicant is liable to pay GST at the rate of 18% on supply of goods in question? – Held that:- It is evident that the Explanatory Notes for Tariff Heading 8418 includes ice-cream makers – It is also observed that in the First Schedule to the Customs Tariff Act, 1975, ‘industrial ice cream freezer’ is mentioned against Tariff Item 8418 69 50 under Tariff Heading 8418. Therefore, ‘Ice Cream Making Machine’ manufactured and supplied by the applicant merit classification under Tariff Heading 8418.
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The Tariff Heading 8438 covers the machinery not specified or included elsewhere in Chapter 84, for the industrial preparation or manufacture of food or drink. As the ‘Ice Cream Makers’ are specifically
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f Heading 84.38 of the Customs Tariff Act, 1975 and Goods and Services Tax rate applicable to Tariff Heading 84.18 is applicable to the said product. – ADVANCE RULING NO. GUJ/GAAR/RULING/2018/1 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017/AR/14) Dated:- 5-2-2018 – R. B. Mankodi Member And G. C. Jain Member For the Applicant : Shri K.A. Nagar, Consultant RULING The applicant M/s. Mitora Machinex Pvt. Ltd. has submitted that they manufacture and supply the Ice Cream Making Machines in diverse specifications such as Automatic Ice Cream Making Machine, Countertop Ice Cream Making Machine, Soft Ice Cream Making Machine and Fully Automatic Ice Cream Making Machine.. 2. The applicant has raised the following questions for Advance Ruling – (i) Whether the aforesaid goods fall under Chapter Heading 8438 of GST Tariff ?; (ii) Whether the applicant is liable to pay GST at the rate of 18% on supply of goods in question ? 3. The applicant submitted that they are of the view that the following
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ted by the applicant that the said goods primarily designed for manufacture of ice cream i.e. food, thus the same cannot be treated as similar to refrigerator, freezer, heat pumps or other refrigerating or freezing equipments of Chapter Heading No. 8418 of GST Tariff. The description of Chapter Heading 8418 is as under – Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8415 . It is submitted that the aforesaid description of the goods relates to (i) the refrigerators, in which goods can be stored at low temperatures; (ii) freezers which withdraw the heat to change something from a liquid to a solid; change to ice; cause to freeze; and (iii) Heat Pump is a device which draws heat from a suitable heat source and converts it with the assistant of a supplementary energy source into a source of more intense heat. These goods shall attract GST at the rate of 28%. However, this description of t
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to the Ice Cream Machine. (iii) the impugned goods is not in the category of luxury item like car, which is deemed to be unnecessary or non-essential, or not like sin product tobacco or demerit goods to attract GST rate of 28%. Therefore, the applicant is of the view that the goods in question are specifically covered by Chapter Heading 8438, which attracts the GST rate of 18%. 7. The applicant, vide their further submissions dated 30.11.2017, referred to the decision in the case of Milk Food Ltd. Vs. Collector of Customs, New Delhi [1994 (71) ELT 549 (Tri.)] and submitted that the Tribunal has held that a single unit for manufacture of ice cream is classifiable under sub-heading 8438 of the Customs Tariff Act, 1975. The applicant also referred to the decisions in the case of Collector of Central Excise Vs. Gakso Refrigeration Engineers [1993 (63) ELT 568 (Tribunal)] and [1997 (89) ELT A40 (SC)] and in the case of General Fabricators Vs. Commissioner of Central Excise, Mangalore [2006
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ning machines of heading 8415 with Chapter Head 8418. As per the description given by the applicant, the product namely, Ice Cream Making Machines appear to be falling under the entry at Serial No. 120 of Schedule IV of Notification No. 1/2017-Integrated Tax (Rate) dated 28.06.2017. 9. We have considered the submissions made by the applicant in their application for advance ruling and additional submissions made vide letter dated 30.11.2017 as well as submissions made at the time of personal hearing. We have also considered the information and views submitted by the Goods & Services Tax and Central Excise, Ahmedabad South Commissionerate. 10. The issue involved in this case is regarding classification of Ice Cream Making Machine . 11.1 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 provides as follows :- Explanation. – For the purposes of this notification, – (i) …… (ii) …… (iii) Tari
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nd the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification. Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the Harmonious System of Nomenclature (HSN). Although, the decision in the case of Woodcraft Products (supra) dealt with the interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes are a dependable guide even while interpreting the Customs Tariff. 12.1 The Tariff Heading 8418 reads as follows :- Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8415 12.2 The Explanatory Notes for Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8415 under Tariff Heading 8418 of the Ha
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The evaporator, the active cooling element, consisting of a tubular system in which the condensed refrigerant, released through an expansion valve, evaporates rapidly with the absorption of heat from the surrounding air or, in the case of large cooling installations, from brine or a solution of calcium chloride kept in circulation around the evaporator coils. In the marine type there is no compressor and condenser in the refrigerant (water or brine) circuit, but the evaporation is induced by a vacuum produced by an ejector pump working with a steam condenser. The later condenses and disposes of the vapours produced, which are not returned to the system. (B) ABSORPTION TYPE REFRIGERATORS xxx xxx xxx xxx Apparatus of the foregoing kinds are classified in this heading if in the following forms: (1) xxx xxx (2) Cabinets or other furniture or appliances incorporating a complete refrigerating unit or an evaporator of a refrigerating unit, whether or not equipped with ancillary devices such
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drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils The Tariff Heading 8438 covers the machinery not specified or included elsewhere in Chapter 84, for the industrial preparation or manufacture of food or drink. As the Ice Cream Makers are specifically covered under Tariff Heading 8418, the same do not fall under Tariff Heading 8438. 13.2 In support of the contention that the Ice Cream Making Machine manufactured by them fall sunder Tariff Heading 8438, the applicant has relied on the decision of Hon ble CEGAT in the case of Milk Food Ltd. Vs. Collector of Customs, New Delhi [1994 (71) E.L.T. 549 (Tribunal)]. We have gone through the said decision. It is observed that the goods / products under dispute have been described in the first paragraph of the said decision as follows :- This appeal is directed against the order-in-appeal passed by Collector of Customs (Appeals), Bombay who has rejected the claim of the classification in respe
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consignments under sub-heading 8438.80, as the complete system on the grounds that in the first consignment product forming system itself consists of conveyor and freezing tunnel without which it cannot work and in the other consignment, enrobing system also cannot work without the conveyor and coating hardening tunnel. ……… . It is not the case of the applicant that the Ice Cream Making Machines manufactured and supplied by them consists of the above referred products, which were the subject matter of dispute in the case of Milk Food Ltd. (supra). Therefore, the said decision is not found to be applicable in the facts of the present case. 14.1 The applicant has also submitted that the Ice Cream Making Machine manufactured and supplied by them are classifiable under Chapter Heading 8419 and referred to the decisions in the case of Collector of Central Excise Vs. Gakso Refrigeration Engineers [1993 (63) ELT 568 (Tribunal)] and [1997 (89) ELT A40 (SC)] and in the cas
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, the decision in the case of General Fabricators (supra) rendered in respect of products fully fabricated insulated tanks and semi-finished insulated tanks by relying on the decision of Gakso Refrigeration Engineers is not found to be applicable in the facts of the present case. 15. In the copy of Invoice No. 70/17-18 dated 13.06.2017 submitted by the applicant, the Tariff / HSN Classification 8418 5000 has been shown in respect of product Soft Ice-Cream Machine SM-301/MGF , which indicates that the applicant was classifying their product under Tariff Heading 8418 in the erstwhile Central Excise regime. 16. In view of the foregoing, we rule as under – RULING The product Ice Cream Making Machine is classifiable under Tariff Heading 84.18 and not under Tariff Heading 84.38 of the Customs Tariff Act, 1975 and Goods and Services Tax rate applicable to Tariff Heading 84.18 is applicable to the said product. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagem
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