TMI Blog2021 (8) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... d as the supply of dry fruits or nuts, whichever is taxable at a higher rate of tax and the tax rate applicable to that supply of dry fruit or nut would be the tax rate of the entire value of mixed supply of fruits and nuts. Supply of both cut fresh fruits and dry fruits and nuts separately and invoicing the same as separate line items - HELD THAT:- In the instant case, the applicant has informed that the customer is having the choice of choosing the dry fruits or nuts and it is not compulsory to choose any one. Hence the value of the fruit bowl is nothing but the sum of the separate supplies of fresh fruits and dry fruits and nuts. Hence the tax rate applicable is that which are applicable to the fruits, dry fruits and nuts separately as they are separate supplies - But in case, the applicant does not give the choice of choosing the dry fruits and nuts to be accompanied and sells the fresh fruits with dry fruits and nuts as a single package, then the same would amount to a mixed supply and is treated as the supply of dry fruits or nuts. Since the nature of dry fruits and nuts is not provided by the applicant, the tax rate applicable to the dry fruits or nuts would be the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for each of the classified goods above? c. Eligibility to input tax credit of GST paid on plant and machinery and expenses relating to the business in case the end product is classified as belonging to 0% tax rate under GST? 4. Admissibility of the application: The question is about classification of any goods or services or both and hence is admissible under Section 97(2) (a) of CGST Act, 2017. BRIEF FACTS OF THE CASE: 5. The applicant furnishes some facts relevant to the issue: 5.1 The Applicant states that they are engaged in the process of buying, processing and selling of various varieties of cut fresh/dry fruits and nuts ready for human consumption under specific brand name both directly to customers and other vendors. 5.2 Detailed operations are as under: a) Buying from the market fresh/dry fruits. b) Process involved in making the product ready for sale. No preservatives are added to retain the quality of the product. Purchased fresh/ dry fruits are washed and cleaned in plain water. Depending on the fruit, some of which are peeled and others without peeling are kept ready for packaging to be sold. Again depe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rind, sapota (chico), custard-apple(ata), bore, lichi, fresh. 0814 Peel of citrus fruit or melons (including watermelons), fresh 6.2 All the packaging sold with addition of dry fruits and nuts along with fresh fruits in the packed container bowl are covered under the following heading a) GST tax rate applicable 5% (CGST-2.5% and SGST-2.5%) HSN Description 0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter 6.3 Branding or not branding will not change the interpretation as no such condition is prevalent in the listing. PERSONAL HEARING: / PROCEEDINGS HELD ON 30-06-2021 7. Sri N.S. Arun Kumar, Accountant and Sri Guru Prasad Shenoy, Director appeared for personal hearing proceedings held on 30-06-2021 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST Act, 2017 are in pari-materia and have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 27/2017(Central tax rate) dated: 22.09.2017 and the relevant portion of the said notification is reproduced below: (A) in Schedule I-2.5%,- (i) against serial numbers 11, 13, 25, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 58 and 59, in column (3), for the words put up in unit container and bearing a registered brand name , the words, brackets and letters put up in unit container and,- (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as in the ANNEXURE] , shall be substituted (G) in the Explanation, for clause (ii), the following shall be substituted, namely: - (ii)(a) The phrase brand name means brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to this, the mixed supply of fruits and dry fruits and nuts would be considered as the supply of dry fruits or nuts, whichever is taxable at a higher rate of tax and the tax rate applicable to that supply of dry fruit or nut would be the tax rate of the entire value of mixed supply of fruits and nuts. 9. Regarding the question in 1 (a) (ii), it is seen that the applicant is supplying both cut fresh fruits and dry fruits and nuts separately and invoicing the same as separate line items. In the instant case, the applicant has informed that the customer is having the choice of choosing the dry fruits or nuts and it is not compulsory to choose any one. Hence the value of the fruit bowl is nothing but the sum of the separate supplies of fresh fruits and dry fruits and nuts. Hence the tax rate applicable is that which are applicable to the fruits, dry fruits and nuts separately as they are separate supplies. 9.1 But in case, the applicant does not give the choice of choosing the dry fruits and nuts to be accompanied and sells the fresh fruits with dry fruits and nuts as a single package, then the same would amount to a mixed supply and is treated as the supply of dry fruits or nu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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