The product ‘K Juice Grape’ falls under the category of “Other” under CTH 2202 10 90.
Classification of goods- The appellant has sought ruling on the following questions:
1) Whether their product K Juice Grape fall under category of fruit beverages or fruit based drinks?
2) What is the rate of tax and HSN code for their product?
3) Is there any persevered percentage of fruit or pulp in the beverages to call them as carbonated fruit beverages or drinks under the GST Act?
The Lower Authority has admitted the question (2) and after considering the various submissions of the appellant, legal interpretations, FSSAI regulations, Customs Tariff Heading, applicable chapter notes of the Customs Tariff and the HSN Explanatory notes, had held that-
“The product 'K Juice Grape' falls under the category of “Other” under CTH 2202 10 90. The applicable rate of tax is 14% CGST vide Sl.No.12 of Schedule IV under Notification No.1/2017-Central Tax (Rate) and 14% SGST vide SI.No.12 of Schedule IV under Notification No.II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended.
We find that the appellant contends that their product is 'Thermally processed fruit beverage complying with Para 2.3.10 of the FSSAI regulation and that the lower authority has given a factually false finding that “the applicant product is not thermally processed fruit juice but covered under para 2.3.30 of the regulation category and category 22.214.171.124 in the food category system in Appendix A to these regulations'.
Held that- In the case at hand it is evident that the product contains fruit juice but is not 'Fruit pulp or Fruit juice based drink' but a Carbonated fruit beverage as marketed by the appellant and therefore, the product is not classifiable under CTH 22029920 as claimed by the appellant and is rightly classifiable under CTH '2202 1090-Other' as has been decided by the lower authority who have dealt in detail the applicable Food regulations as per FSSAI.
For reasons discussed above, we do not find any reason to interfere with the Order of the Advance Ruling Authority in this matter. The subject appeal is disposed of accordingly.