Home Case Index All Cases GST GST + AAR GST - 2023 (12) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 724 - AUTHORITY FOR ADVANCE RULING, TAMILNADUClassification of goods - frozen chicken - Poultry Meat Not Cut in pieces - to be classified under HSN Code 02071200 or not - Poultry Meat Cuts and Offal - to be classified under HSN Code 02071400 or not? - N/N. 2/2017-CT (Rate) dated 28.06.2017 - HELD THAT:- If the packaged commodities viz. the impugned products containing quantity of more than 25 kg are meant for institutional consumers, then the same would be exempted under SI.No. 9 of Notification No. 2/2017-CT (Rate) dated 28.06.2017 as amended - From the plain reading of the definition of 'institutional consumers', it means that the packaged commodities, firstly, should bear a declaration not for retail sale', secondly, it is meant exclusively for use by that institution; and thirdly, it is not for commercial or trade purposes. It is found that a declaration that 'packed exclusively for institutional sale, not for retail sale' will be affixed on the bag. Hence the first condition is met. It is also found that the proposed sale is being made by the wholesale dealer/trader, in this case, the Applicant. Coming to the last condition, it is found that such sale proposed to be made by the Applicant, should also establish that it is not for commercial or trade purposes even though it is meant for use by that institution. As per the facts submitted by the Applicant, they intend to supply to institutional consumers such as The Indian Army, Ministry of Defence, The Park Hotel, Chennai etc. - for supplies to be made to institutional consumers, it is found that the exemption from GST as claimed by the Applicant would be available if and only if it fulfills all the conditions envisaged under Rule 2(bc) of the Packaged Commodities Rules 2011 for "Institutional Consumer". As regards the supply of the impugned products to a distributor who would further supply to institutional consumers, Rule 3(c) of the Chapter II of the Packaged Commodities Rules, states that 'packaged commodities meant for industrial consumers or institutional consumers'. Thus the condition given in the said rule is that the end user should be industrial consumers or institutional consumers. The Applicant has stated that the impugned frozen chicken is pre-packaged and labelled. Accordingly, adhering to other provisions of Legal Metrological Act, 2009, the rate of duty for the impugned frozen chicken is of 2.5% -CGST, 2.5% - SGST, in ease of intra-state supply, and 5% IGST in case of supply to inter-state, is payable.
|