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2022 (9) TMI 841 - AAR - GSTClassification of goods - non-alcoholic malt drink 'Kingfisher Radler' - covered as “Carbonated beverages of fruit drink or carbonated beverages with fruit juice” of chapter heading 2202 or not - applicability of Entry 12B of Notification No.1/2017 dated 28.06.2017 (as introduced by Notification No.8/2011-Central Tax (Rate) dated 30.09.2021) - whether the impugned product qualifies to be a non-alcoholic beer or not? - HELD THAT:- Reference made to the Explanatory Note 3 to chapter 2202 wherein it is specified that “for the purposes of heading 2202, the term 'non-alcoholic beverages' means beverages of an alcoholic strength by volume not exceeding 0.5% vol.” Further Explanatory Notes to Chapter Heading 2202 specify that the said heading covers non-alcoholic beverages - the 'non-alcoholic beer' is basically a beer having certain alcoholic strength which is reduced to 0.5% vol or less. It is an admitted fact in the instant case that the impugned product does not contain any alcoholic strength by volume, as it is not fermented and hence the question of reducing the said strength does not arise. Hence the impugned product is neither a beer initially nor it's alcoholic strength is reduced to 0.5% vol. Thus the impugned product does not qualify to be a non-alcoholic beer, but it is a non-alcoholic beverage. Whether the impugned product qualifies to be a malt based beverage or fruit based beverage? - HELD THAT:- The %age of Barley malt is less than the mixed fruit juice content in all the product variants. The Ginger lime variant is not considered as its production is discontinued, as per the applicant. Thus it could be inferred that the predominant component of the product is mixed fruit juice content - the contention of the applicant that the product is marketed and understood in common trade parlance as 'non-alcoholic beer' and on this basis alone it deserves to be classified under tariff item 2201 91 00 is not acceptable. The impugned product is a mixture of Barley malt, sugar, mixed fruit juice, hops, lemon extract, carbon dioxide, water, flavor & other additives and Black carrot juice, amongst which the predominant is mixed fruit juice, in all variants of the product. Thus the product needs to be classified on the basis of predominant material/substance in terms of Rule 2(b) of General Interpretation Rules. Further all the variants of the product are admittedly carbonated and hence they are nothing but carbonated beverages - all the variants merit classification as carbonated beverages of fruit drink, covered under tariff heading 2202 99 90. Accordingly the product attract GST @ 28% along with applicable cess of 12% in terms of SI.No.12B of Schedule IV to the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, effective from 01.10.2021.
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