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2019 (8) TMI 308 - AAAR - GSTClassification of goods - Biogut Capsule - Zinc Ascorbate Syrup - Lactoin Drop - whether the products for which classification has been sought fall under the category of dietary/health supplement or they are drugs and medicines as claimed by the Appellant? - HELD THAT:- The Appellant is a license holder under FSSAI and as per the Appellant's submission and observations of WBAAR, the products have stickers pasted on packaging proclaiming “Health/Dietary Supplements”, “Health Drinks” and “Not for Medicinal Use”. This is as per the Regulations set by FSSAI. It is noted that Food for Special Medical Purpose and Food for Special Dietary Use are intended to be used only under medical advice [Regulations 3 & 8]. The general requirement [Regulation 2(d)(ii)]of the Regulations specifies that the articles of food sold in capsules, tablets, syrups, hard or soft or vegetarian, shall comply with the general monograph and quality requirements specified for them in Indian Pharmacopoeia and also, the quantity of nutrients added to the articles of food shall not exceed the recommended daily allowance as specified by the Indian Council of Medical Research and in cases such standards are not specified the standards laid down by international food standards body, namely, Codex Alimentarius Commission, shall apply. So being prescribed by medical practitioners for a limited period use or sold by pharmacists are not sufficient parameters for the products in question to be classified us medicaments as per HSN classification in the light of the current Regulations laid down by FSSAI, It is clear that products under the Drugs and Cosmetics Act, 1940, will not fall under those categories regulated by FSSAI and vice versa. These two categories, namely the products under the Drugs and Cosmetics Act. 1940, and these regulated by FSSAI are mutually exclusive. In fact the products in question are not eligible drug license under the Drugs and Cosmetics Act, 1940 as these are mainly prebiotic and probiotic supplements, oral rehydration formulate and tonic. The products in question are classifiable under HSN 2106, and taxable under Sl.No. 23 Schedule III or Notification 1/2017-C.T (Rate) dated 28-06-2017 under the Central (Goods and Services ax Act, and Notification No. 1125-FT dated 28-06-2017 under the West Bengal Goods and Services Tax Act, 2017, as amended vide Notification No. 41/2017 (Rate) dated 14-11-2017 under the Central Goods and Services Tax Act, 2017 and Notification No. 2019-FT dated 14-11-2017 under the West Bengal Goods and Services Tax Act, 2017. Appeal dismissed - decided against appellant.
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