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2022 (5) TMI 123 - AAAR - GSTClassification of goods - rate of GST - Dry Powders containing Protein Powder with Vitamins & Minerals - to be classified under HSN 2106 or under chapter 3004 of the GST Tariff Act, 2017? - HELD THAT:- As regard to the ‘Prophylactic use’ of the product in question, on examination of the appellant’s label on the product, it is found that the product in question viz Protowits’ is undoubtedly described more like a food product than the medicine. The product is described as Chocolate flavour. The picture of the product on the label showing a glass containing the preparation of the said product clearly gives the image of a food beverage like Bournvita or Coffee and other various product available in market now-a-days. Taking into view the totality of the label, the whole thrust is on the food value of the product, it’s flavour, deliciousness, richness, nourishment, attractiveness and all other qualities for which normal people look to the food for their health, growth and taste. Easy preparation of the said product is also emphasized - The word ‘prophylactic’ means the medicines or course of action taken for preventing disease. If the broader sense of prophylactic use is taken, then all foods are prophylactic in nature, as all proper food prevents the diseases by providing necessary energy, strength and nutrition to the body which are essential for preventing the diseases. But in the context of medicines, prophylactic medicines are only those, which prevent the specific diseases by enhancing fighting and resistance capacity to the body or by providing safety mechanism. That some foods or beverages can be akin to the prophylactic medicines are recognized in Chapter 30 of the GST Tariff Act, 2017 and to avert the confusion on this point Note 1(a) in Chapter 30 is inserted for exclusion of such food supplements from the purview of medicaments of Chapter 30. On scrutiny of Chapters 16 to 24 covered by Section IV, it is found that there is no other Chapter more appropriate than Chapter 21 (Miscellaneous Edible Preparations) and as such the product in question viz “Protowits” should be classified under Chapter 21 only.
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