In Re: M/s. Prem Ghan Products
GST
2019 (1) TMI 360 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2019 (20) G. S. T. L. 796 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 23-10-2018
Case No. 16/2018 Order No. 17/2018
GST
RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY MEMBER
Present 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 Ac
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. on supply of such product.
3.3. Prior to roll out of GST, i.e. prior to 01.07.2017, the applicant had been carrying out the same business and classifying and clearing/selling the impugned product under Chapter Heading 2106 of the schedule to the Central Excise Tariff Act 1985, and the applicant had been duly registered 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 t
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ugar, khopra, sounf, fennel, dates, mishri, saccharin, menthol, papaya fruit, or natural flavouring substances, are liable to be classified under Chapter 21 i.e. 'Miscellaneous Edible Preparations' – 2106 (food preparations not elsewhere specified or included) and taxed at 18% GST as currently followed or under Chapter 20 i.e. 'Preparations 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 AN
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hey had been clearing the impugned product under Chapter Head 2106.
7.3. We further observe 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. We also take a note of the fact narrated by the Applicant in Para 2 of Annexure 04 (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
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hener, we do not find any reason in reviewing the established and settled classification of impugned goods.
7.8. Having observed as above, we hold that the impugned goods shall be aptly classifiable under Chapter Head 2106 and would attract prevailing rate of GST @18% [(9% CGST + 9% SGST) or 18% IGST as the case may be], as 'Food preparations not elsewhere 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
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