IN RE: M/s. M.U.N. AGRO INDUSTRIES PVT. LTD.
GST
2018 (11) TMI 958 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (19) G. S. T. L. 167 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 16-7-2018
GST-ARA-17/2018-19/B-68
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by M. U.N. AGRO INDUSTRIES PVT. LTD., the applicant, seeking an advance ruling in respect on the following questions.
* Whether our product or goods fall under chapter tariff heading 0204 and exemption given to this tariff item vide Notification No. 02/2017- Central Tax (Rate) dated 28/06/2017 is available to us or not ?
*
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g on which neither we are printing or mentioning any specific weight nor we are supplying any fixed weight in one bag. Such bags are not exclusively used for packing meat. It is available in general market and used to pack anything like grains, pulses etc.
Our Question is, whether frozen meat supplied in such bag of different weight and size will be treated as frozen meat put up in unit container?
Submissions dated 13.07.2018.
As required by you in final hearing, we are submitting herewith as follows;
1. Copy of Tender Note (RFP)
2. Copy of Acceptance of Tender Note
3. Trade Mark Search Report (including Details of Class/ Goods covered)
4. Sample Purchase Order from Army (Demand for Contracted Items)
* Further we have to state that following are the two questions on which advance ruling was required;
a. Whether our product or goods fall under chapter tariff heading 0204 and exemption given to this tariff item vide Notification No. 02/2017-Central Tax (Rate) dated 28/06/20
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ed goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person, and which is registered under the Trade Marks Act, 1999.
* According to explanation to 44/2017-Integrated Tax (Rate) dated 14/11/2017 following sub clause is substituted, namely:-
(b) The phrase “registered brand name” means, –
(A) a brand registered as on or after the 15th May 2017 under the Trade Marks Act, 1999 irrespective of whether or not the brand is subsequently de-registered;
(B) a brand registered as on or after the 15th May2017 under the Copyright Act, 1957(14 of 1957);
(C) a brand registered as on or after the 15th May 2017 under any law for the time being in force in any other country.”
* GST is charged only when all three conditions are satisfied. Out of three condition one important condition is that product must bear registered b
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and that person.
* Therefore, we are of the view that our product is unbranded and exemption is available Vide Notification No. 44/2017 – Integrated Tax (Rate) dated 14/11/2017.
Statement of applicants interpretation of law in respect of question raised on which Advance Ruling is sought.
* Explanation (i) to notification 02/2017-Central Tax (Rate) dated 28/06/2017 have explained the phrase “Unit container” as a package, whether large Or small (for example Tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a pre-determined quantity or number , which is indicated on such package.
* In our case, we are not mentioning or printing any weight / pre-determined quantity/number on such bag and also in one bag we are not packing Standard/ fixed quantity. Hence We are interpreting that our bag is not an unit container.
03. CONTENTION – AS PER THE CONCERNED OFFICER –
The submission, as reproduced verbatim, could be seen thus-
Submissions on 25.06.20
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he weight of carcass.
Point no. (4) – Notification No. 02/2017 – Central Tax (Rate) exempts the listed goods from whole of the Central Tax leviable. Tariff heading 0204 in said notification exempts Meat Of sheep or goats, fresh, chilled or frozen (other than frozen and put up in unit container), In the explanation given in the same Notification Unit Container is defined as follows:
The phrase “unit container” means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.
Despite the applicant's contention that they are neither supplying any fixed weight in one bag nor mentioning any specific weight on the label, it should still qualify as “Unit Contained' as the weight or meat to be supplied is predetermined according to their contract (sample copy enclosed). Since the weight of the Carcass is weighed and labelled by the ap
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tification disallows exemption for meat which is frozen and put up in unit container.
04. HEARING
The case was taken up for preliminary hearing on dt. 26.06.2018, with respect to admission or rejection of the application when Sh. Yogesh Ratnani, C.A., and Sh. Prakash Morbia, Tax Consultant along with Sh. Mohammed Sufiyan Nagani, Director appeared and made contentions as per details in their ARA. The jurisdictional officer, Ms. Nishtha Sharma, Asstt. Commissioner of GST & CE, Division-III, Belapur Commissionerate appeared and made written submissions.
The application was admitted and final Hearing was held on 11.07.2018, Sh. Yogesh Ratnani, C.A., and Sh. Prakash Morbia, Tax Consultant along with Sh. Mohammed Sufiyan Nagani, Director appeared made contentions as per their ARA. They were requested to provide copy of Tender, Trade Mark Certificate class of goods covered by this trademark which they agreed to submit. The jurisdictional officer, Ms. Nishtha Sharma, Asstt. Commissioner o
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fixed weight in one bag. Such bags are not exclusively used for packing meat. It is available in general market and used to pack anything like grains, pulses etc. Applicant further submit that they are not mentioning or printing weight/ predetermined quantity or number on such bag. And also in one bag they are not packing standard / fixed quantity. On this set of facts applicant submits that the impugned bag in which frozen carcass is supplied is not a unit container as defined in the notification 1/2017 and 2/2017- Integrated Tax (Rate) dated 28/06/2017.
From the facts as narrated above and for the fact that they are also supplying meat as per Tender of the Indian Army under similar terms and conditions, we find that these facts are similar to the facts recorded by us in the Advance Ruling already given in case of M/s. Monrovia Leasing and Finance Pvt Ltd bearing order No. GST-ARA-20/ 2017-18/B-83, Mumbai, dated 04/08/2018 = 2018 (10) TMI 1244 – AUTHORITY FOR ADVANCE RULING, MAHARAS
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rinting or marking of weight or number of carcass packed in such bags and there is no mentioning of brand name. Further the tender pursuant to which impugned supplies are to take place there is no requirement of from Army regarding mentioning weight or number on the packaging material. Whereas in case of M/s. Ahmednagar District Goat Rearing and Procession Co-operative Federation Ltd packaging conditions mentioned in Terms and Conditions “RFP” given by Army required mentioning of actual weight on the secondary packaging. In this regard appellant submitted letter dated 28/05/2017 issued by Col. S. HQ Southern Command Pune with following declaration-
“It is certified that chilled/frozen chicken/meat is supplied to the Army by various firms through Annual Contracts. As per order on the subject, the net weight / numbers of the item is not required to be mentioned on the packaging”
Thus the issue before us is whether such supply is covered by the expressions 'unit container' as
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r is mentioned on packages. In view of above we are convinced that impugned supply would not satisfy the requirement of the definition of 'unit container' as found in both the notification cited supra. In this view of the matter, we hold that the supply of whole sheep/goat carcass in frozen state packed in LDPE bag and further packed in HDPE bag which do not indicate any information related to weight/number of the carcass packed in such bags as product not put up in a unit container and bearing a brand name for the purpose of notification 01/2017and 2/2017- Integrated Tax (Rate) dated 28th June, 2017.
For above discussion we do not find any cogent reason to deviate from the view which we have already taken. Accordingly we hold that the frozen meat of sheep / goat in HDPE gunny bag which do not indicate any information related to weight / number of carcass packed in such bags would tantamount to being as a product not put up in unit container and thus falls under chapter tariff headin
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