In Re: M/s. Gitwako Farms (India) Pvt. Ltd.
GST
2018 (7) TMI 1494 – AUTHORITY FOR ADVANCE RULINGS HARYANA – 2018 (15) G. S. T. L. 127 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS HARYANA – AAR
Dated:- 1-6-2018
HAR/HAAR/R/2017-18/10
GST
Sangeeta Karmakar Member CGST and Vijay Kumar Singh Member SGST
ADVANCE RULING NO.HAR/HAAR/R/2017-18/10
(In Application No.: 10, dated 06.03.2018)
Present for the Applicant: Sh. Gourav Gupta C.A. and Sh. Neeraj
Present for the department: Sh. Rakesh Dahiya, ETO, Mewat.
Factual Background
M/s. Gitwako Farms (India) Pvt. Ltd supplies to Army and Para Military Forces sheep/goat meat in carcasses of different weight and size in frozen State. Each frozen carcass is put in LDPE bag (primary packing) which is sealed with a tie and no weight is mentioned on such LDPE bags. Thereafter, one or two of such LDPE bags are put in dust and moisture proof food grade HDPE bags (secondary packing). On such HDPE bags, contents including produc
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Hearing
The applicant was afforded a personal hearing for 24.05.2018. The issue raised by the applicant for advance ruling, whether their product can be said to be packed in a unit container to fall under the scope of notification no. 1/2017-Central Tax (Rate) and 1/2017- Integrated Tax (Rate) dated 28.06.2017 or notification no. 2/2017 -Central Tax (Rate) dated 28.06.2017. is covered under the scope of section 97 of CGST/HGST Act 2017 and therefore, the application was admitted.
As regard the classification of their product, the departmental representative had stated that the applicant firm is packing the animal carcasses in bags for supplying to their customers, i.e. Army, in unit containers and therefore it attracts GST @ 12%.
The applicant had strongly argued that the packing done by them cannot be said to be unit containers as it is defined in the explanation to mean a package designed to hold a pre-determined quantity or number which is indicated on such package. The applican
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ut up in a 'unit container, it would be exigible to tax @12%.
Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government vide notification no. 2/2017-lntegrated Tax (rate) New Delhi dated 28.06.2017 has exempted, Inter-State supplies of goods, from the whole of the Integrated Tax leviable thereon. Relevant extract is reproduced below:
Schedule-
Sr. No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
10.
0204
Meat of sheep or goats, [other than frozen and put up in unit containers]
W.e.f. from 15th November 2017 onwards.
Schedule I of the Notification no. 43/2017-Integrated Tax (rate) dated 14th November, 2017 deals with the products which are subject to 5% GST and entry No. 1 which pertain to sheep meat and poultry meat are provided below:-
Schedule-I
Sr.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
1.
0204, 0207
All goods (other than
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the Integrated Goods and Service Tax Act, 2017 the Central Government via notification no. 44/2017 Integrated Tax (rate) New Delhi dated 14.11.2017 has exempted, Inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduced below:
Schedule-
Sr.No.
Chapter/Heading/Sub- heading/Tariff item
Description of Goods
8
0204
0207
All goods, fresh or chilled
7.
0204
0207
All goods (other than fresh or chilled) other than those put up in unit container and,-
(a) bearing a registered brand name; or
(b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to conditions as in the annexure I]”,
A conjoint reading of the extracts of the above mentioned notifications reveal that on products of Chapter/Heading/Sub-heading/Tariff item 0204 and 0207 GST is ch
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packing) which is sealed with a tie and no weight is mentioned on such LDPE bags. Thereafter, generally two of such LDPE bags are put in HDPE bags (secondary packing) and the weight of both the packed carcasses is mentioned on the secondary packing. Thus, the packing of the frozen carcasses done by them is only a medium of delivery and since these are not in pre-determined units, these packing cannot be termed as 'Unit Containers'.
To substantiate their view regarding unit container the applicant had cited several case laws. Reliance is placed on the case of CCE Vs Shalimar Super Foods [2007 (210) ELT 695 (Tri.-Mumbai] and Surya Agro Oils Ltd. vs CCE, Indore, 2000 (116) ELT 514.
In of CCE Vs Shalimar Super Foods [2007 (210) ELT 695 (Tri.-Mumbai] the Hon'ble bench had considered the question of 'Unit Container' and observed in para 3:
“3. . . .However, unit container, as per the definitions contained in several dictionaries, is a container containing pre-determine
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one by the applicant cannot be regarded as 'Unit Container' since it is not standardised to hold a uniform predetermined quantity. Also in the explanation appended to the Notification No. 1/2017-Integrated Tax (Rate) dated 28th June 2017 a unit container means a package, whether large or small (for example tin, can, jar, box, bottle, bag, carton, drum, barrel or canister) designed to hold a pre-determined quantity or number, which is indicated on such package. The explanation itself suggests that the make of the container should be such which can hold a predetermined quantity or number. It should be such that when packed it holds the predetermined quantity or the number for which it is designed. As shown to us the packaging by the applicant can weigh 10 Kgs or 11 Kgs or for that matter 10.5 or 10.25 Kgs depending upon the weight of two frozen carcasses, packed in secondary packaging. Neither the packaging is uniform or standardised nor the packages are designed to hold a predet
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