Home Case Index All Cases GST GST + AAR GST - 2020 (11) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 268 - AAR - GSTClassification of goods - Nizam Pakku - classifiable under Chapter heading 0802 8030 of the Customs Tariff or not - SI. No. 28 of Schedule I of Notification 1/2017 Central Taxes (Rate) Dt- 28.06.2017 - HELD THAT:- The product is marketed as ‘NIZAM PAKKU’. From the Tax Invoice’ furnished [Invoice No.783 cit. 12-Nov-2019,729 dated 24-0ct-2019,680 dated 29.10.20191, it is seen that the description is ‘NIZAM BETELNUT GRADE II’, ‘BETELNUT GRADE 11 250 PCSX20PKTS, LOOSE BETELNUT 100X50, etc, the HSN code is specified as ‘0802’ and the rate of tax charged is CGST @ 2.5% & SGST @ 2.5%. The product is said to be used for chewing with or without betel leaves. It is evident that CTH 21069030 covers ‘Betel nut product known as “Supari”, while Areca (betel) nuts Whole, Split, Ground, Other are specifically mentioned as classified under sub-heading 08028010, 08028020, 08028030 and 08028040 of Chapter head 0802. In the case at hand, the applicant’s product is marketed as ‘Nizam Pakku’. The betelnut/ arecanut(broken/pulverised) is heated with Vegetable oil, menthol for the purpose of preserving and Sugar, glucose syrup, menthol and spices, viz., cardamom and cloves are added. As per the test reports furnished by the applicant, (from the excellence Laboratory dated 13.11.2019) the percentage content of betel nut is 92% & the other ingredients are cardamom(0.9%),Sugar(Betel Nut)-1.9%; Vanaspati/EdibIe Oil-4.7%, which are the admissible ingredients as per Chapter Note 3 of Chapter 08 of the Customs Tariff. Also, the test report of ‘Bureau Veritas India Pvt Ltd’ states that The sample is cut pieces Of dried edible Betelnut’. Thus it is seen [hat the essential character of betel nut (arecanut) remains the same in the product supplied by the applicant. Therefore, following Rule 1 of General principles of Interpretation of the Tariff, the product merits classification under Chapter head 080280 and not under CTH 2106. Rate of GST - HELD THAT:- The rate of CGST is notified vide Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended in respect of goods and that of SGST is notified vide Notification No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. The rate pertaining to Chapter Head 0802 are available at Sl.No 28, 29 of Schedule I- 2.5% of the Notifications, and Sl.no.15 of Schedule 11-6% of the Notifications - while Dried areca nuts, whether or not shelled or peeled are subjected to GST @5% as per Sl.No. 28 of Schedule I; those products classified under 0802 other than dried areca nuts are subjected to GST @ & SGST-6%] as per Sl.No. 15 of Schedule II. Thus, it is evident that only those dried areca nut, not called as betel nut is subjected to 5% GST under Sl. No. 28 of Schedule I. The product in hand being betel nut, the applicable rate is 6% CGST as Per SI. No. 15 of Schedule II of the said Notifications.
|