2019 (1) TMI 360 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – TMI – Classification of goods – mouth fresheners (after mixing Kharak, Khopra, Sugar, Saunf, Mishri, fennel, Dates, Saccharin, menthol, Papaya fruit, or natural flavouring substances) – whether classifiable under chapter heading 2106 of HSN as ‘Miscellaneous Edible Preparations not elsewhere specified or included’ chargeable at 18% GST or under Chapter 20 i.e. ‘Preparations of Vegetable, fruit, nuts or other parts of plants’ and taxable at 12% GST?
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Held that:- The Applicant has been clearing/selling/supplying the impugned product under Chapter 21016 since long, i.e. much prior to roll out of GST with effect from 01.07.2017 – while the impugned product was being classified under Chapter Head 2106 of the erstwhile Central Excise Tariff Act 1985, there is neither any change in ingredients nor any change in manufacturing process. To be precise, the impugned product remains the same in GST regime with no change from pr
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nt on behalf of applicant: Shree Arpit Mundra, CA and Shree Vikas Goel, Partner PROCEEDINGS 1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST Act and MPSGT Act respectively) by M/s. Prem Ghan Products (hereinafter also referred to as applicant), registered under the Goods & Services Tax. 2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE- 3.1. M/S. Prem Ghan Products, Indore [hereinafter referred to as the Applicant] is engaged in the manufactur
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with the Central Excise Department. 3.4. The Applicant has contended that there are other major market players in this field who are dealing in similar products under the brand names Chutki , Paas Paas , Mastana Mouth Freshner etc., and these particular products are being classified under Chapter 20 of the HSN attracting GST @12%. 3.5. The Applicant have further submitted that in light of the similar products of other manufacturers being classified under Chapter 20, the impugned product of the Applicant would also merit classification under Chapter 20 instead of prevailing Chapter 2106. 3.6. It has been reiterated in the Application that the classification of the product of the Applicant under Chapter 2106 in line with the Central Excise Law and Central excise Tariff. However, Applicant has contended that the raw materials being used in manufacturing impugned product are not specified in GST tariff by name Mouth Freshener . 3.7. In view of above, the Applicant has filed the instant ap
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ions of Vegetable, fruit, nuts or other parts of plants and taxable at 12% GST? 5. DEAPRTMENT S VIEW POINT: The Concerned Officer of the Madhya Pradesh Commercial Tax Department viewed that the impugned commodity doesn t fall under Chapter 20 i.e. Preparations of Vegetable, fruit, nuts or other parts of plants and taxable at 12% GST, but it comes under CHS 2106 i.e. food preparation not elsewhere specified or included. 6. RECORD OF PERSONAL HEARING: 6.1. Shree Arpit Mundra, CA and Shree Vikas Goel, Partner, appeared on behalf of the applicant for Personal Hearing and he reiterated the submissions already made in the application. 7. DISCUSSIONS AND FINDINGS: 7.1. We have carefully considered the submissions made by the applicant in the application, the pleadings on behalf of the Applicant made during the course of personal hearing. At the outset, we find that the issue raised in the Application is squarely covered under Section 97(2)(a) of the CGST Act 2017 and MPGST Act 2017 being a ma
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Statement containing the applicant s interpretation of law and facts) of the Application, which says, The classification of the assessee s finished product under chapter heading 2106 is in line with the classification under Central Excise Law and Central Excise Tariff . This statement of the Applicant is enough to conclude that there was no dispute regarding classification of the impugned product during pre-GST regime. 7.4. We find that while the impugned product was being classified under Chapter Head 2106 of the erstwhile Central Excise Tariff Act 1985, there is neither any change in ingredients nor any change in manufacturing process. To be precise, the impugned product remains the same in GST regime with no change from pre-GST regime. 7.5. The solitary reason for the Applicant in moving instant application, as we could gather from the contents of the application, appears to be alleged divergent practice of classification of similar products of some other manufacturers. Be that as i
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ere specified or included , in terms of Notification No.01/2017-Central Tax (Rate) and Corresponding notification under The MPGST Act 2017 the entry number 23 of Schedule III to the said notification. RULING 8. The Advance Ruling on question posed before the authority is answered as under: 8.1 The product Mouth freshener as described in the Application will merit classification under Chapter Heading 2106 of the GST Tariff as Food preparations not elsewhere specified or included and would be chargeable to GST at applicable rate under the said tariff entry, presently read with Notification No.01/2017-Central Tax (Rate) dtd.28.06.2017 and the corresponding notification under MPGST Act 2017 (Sr. No.23 to Schedule III). 8.2 This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com –
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