Classification of Goods — The Applicant in his application sought clarification and Advance Ruling as follows :-
(i) What shall be the present applicable CGST & SGST tax rate on their final product i.e., "Namkeen" duly packed & sealed in printed pouches?
(ii) Whether their proposed plan to sell the said final product on payment of tax @ 5% is proper/ legal or not?
In the instant case, the applicant is packing their product in unit containers/retail pouches with the details of the manufacturer on the packaging for supply of Products. Since, namkeens, bhujia mixture, chabena and similar edible products packed in unit containers/ retail pouches are taxed at the rate of 12% GST (6% CGST + 6% SGST) under the said notification. To avail reduction in duty, if the manufacturer fulfills the condition of the Notification 28/2017-Central Tax (Rate), dated 22-9-2017 subject to the condition (a) as in the Annexure-I which is as follows :-
For foregoing an actionable claim or enforceable right on a brand name-
(a) the person undertaking packing of such goods in unit containers which bears a brand name shall file an affidavit to that effect with the Jurisdictional Commissioner of Central Tax that he is voluntarily foregoing his actionable claim or enforceable right on such brand name as defined in Explanation (ii)(a);
Therefore, it is clear that if the applicant voluntarily foregoes the brand name (Name of the manufacturer in this case) used by them subject to conditions as in the Annexure of the said notification, the applicant shall be eligible for reduced rate of from duty under the said notification. — Atul Kumar Rajpal, In Re…  15 TAXLOK.COM 130 (AAR-UP)