In Re: M/s. Wonderfrutz Products LLP,
GST
2018 (12) TMI 476 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 170 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 17-11-2018
AAR No. KAR ADRG 27/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
Represented by Sri Neeraj Agarwal, Partner
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
1. M/s. Wonderfrutz Products, (called as the 'Applicant' hereinafter), having its registered office at No.80, Masthi Road, Mylandahalli Village, Kudaynoor Post, Malur Taluk, Kolar District, having GSTIN number 29AACFW4389C1ZW, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-Ol discharging the fee of Rs. 5,000-00 each under the CGST Act and
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ducts including cakes, milk-breads, cookies, dilkhush and buns. Tutti-frutti is. also used in cold desserts as topping for ice-creams and sundaes. They are also used in sweet paans.
c. The applicant states that they have ambiguity regarding the classification of the product tutti-frutti and for the same they have referred two HSN codes – 0811 and 2006. The description given by these HSN codes are as follows:
i. Chapter 8, HSN Code 0811 reads as “Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter, Code 0811 10 10 containing added sugar.
ii. Chapter 20, HSN Code 2006 00 00 reads as “Vegetables, fruits, nuts, fruit peel and Other parts of plants, preserved by sugar (drained, glace or crystallised)
d. The process of preparation of tutti-frutti, as furnished by the Applicant, is as under:
i. Raw papaya is peeled, stored in brine solution, cut into cubes
ii. Next it is washed and boiled
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s first stored in brine solution after peeling and then cut into cubes, later washed and boiled in water and cooked with sugar, colour, preservative, citric acid. Lastly, the product is dried and packed for sale. There is a process of cooking by boiling in water and sugar is also added.
4.2 The notification No.01/2017-Central Tax (Rate) dated 28.06.2017 provides the following clauses, with regard to classification of goods under GST, at explanation to the said Notification.
(iii) “Tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
In view of the above, the
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water, frozen, whether or not containing added sugar or other sweetening matter.
0811.10 – Strawberies
0811.20 – Raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries
0811.90 – Other
This heading applies to frozen fruit and nuts which, when fresh or chilled, are classified in the preceeding headings of this Chapter (As regards the meanings of the expressions “chilled” and “frozen”, see the General Explanatory Note to this Chapter)
Fruit and nuts which have been cooked by steaming or boiling in water before freezing remain classified in this heading. Frozen fruit and nuts cooked by other methods before freezing are excluded (Chapter 20)
Frozen fruit and nuts to which sugar or other sweetening matter has been added are also covered by this heading, the sugar having the effect of inhibiting oxidation and thus preventing the change of colour which would otherwise occur, generally on thawing out. The products of this heading may also
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reference is made to the explanatory notes to the Hormonised Commodity Description and Coding System, with respect to the CTH 2006, which is appended below:
20.06 – Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glace or crystallized).
The products of this heading are prepared first by treating the vegetables, fruit, nuts, fruit-peel or other parts of plants with boiling, water (which softens the material and facilitates penetration of sugar) and then by repeated heating to boiling point and storage in syrups of progressively increasing sugar concentration until they are sufficiently impregnated with sugar to ensure their preservation.
The principal products preserved by sugar are whole fruit or nuts (cherries, apricots, pears, plums, chestnuts (marrons glaces), walnuts etc.), sections or pieces of fruit (oranges, lemons, pineapples, etc.), fruit-peel (citron, lemon, orangey melon etc.), other parts of plants (angelica, ginger, yams, sw
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