Unit container test under GST denied exemption for branded frozen chicken packed as fixed single-unit supply.

Branded frozen chicken packed in individual LDPE bags and secondary HDPE bags was treated as goods put up in unit containers for GST exemption purposes. The applicable notification covers Heading 0207 goods only when they are not fresh or chilled, bear a registered brand name, and are not packed in unit containers. The authority found that one dressed chicken in each primary bag and the branded secondary packing reflected a fixed unit of supply, even though no separate printed weight figure appeared on the package. On that basis, the product was held ineligible for exemption under Entry No. 9 of Notification No. 2/2017-C.T. (Rate).

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Issues: Whether branded frozen chicken packed in individual LDPE bags and secondary HDPE bags was put up in unit containers so as to deny exemption under Entry No. 9 of Notification No. 2/2017-C.T. (Rate), 28.06.2017.

Analysis: The applicable GST notifications cover goods of Heading 0207 when they are not fresh or chilled, bear a registered brand name, and are put up in unit containers. The expression "unit container" means a package designed to hold a predetermined quantity or number, indicated on the package. The supply in question consisted of one dressed chicken in each primary LDPE bag, with the final supply made through branded secondary HDPE bags. The quantity in the primary packing was fixed as one chicken per bag, and the overall packing was designed to hold a predetermined range of weight for supply to the Army. The absence of a printed numerical weight on the package did not defeat the character of the packing as a unit container.

Conclusion: The packed branded frozen chicken was held to be supplied in unit containers and was not eligible for exemption under Entry No. 9 of Notification No. 2/2017-C.T. (Rate), 28.06.2017.

Ratio Decidendi: For purposes of the GST exemption notification, a package constitutes a unit container if it is designed to hold a predetermined quantity or number, and the quantity need not be printed as a separate weight figure where the nature of the goods and packing show a fixed unit of supply.

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