Carbonated fruit beverage classification: flavoured grape drink placed under residual heading, while broad advance ruling query was not maintainable.

AAR jurisdiction is confined to the statutory questions permitted under advance ruling law, so a broad request for a general percentage of fruit or pulp needed to describe a carbonated fruit beverage was not maintainable and was left unanswered. On classification, the product 'K Juice Grape', containing water, sugar, grape juice, carbonation, flavouring and preservatives, was treated as a carbonated flavoured beverage rather than a thermally processed fruit juice. It was classified under heading 2202 10 90 as 'Other', not under the fruit juice or fruit pulp based entries, and the applicable GST rate was accordingly applied.

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Issues: (i) Whether the questions seeking a general determination on the product's character and the percentage of fruit or pulp required to describe it as a carbonated fruit beverage were within the scope of advance ruling jurisdiction; (ii) Whether the product "K Juice Grape" was classifiable as fruit pulp or fruit juice based drink under heading 2202 90 20, or as "other" under heading 2202 10 90, and the applicable rate of tax.

Issue (i): Whether the questions seeking a general determination on the product's character and the percentage of fruit or pulp required to describe it as a carbonated fruit beverage were within the scope of advance ruling jurisdiction.

Analysis: The scope of advance ruling is confined to the matters enumerated in the governing provision. A general question asking whether there is any prescribed percentage of fruit or pulp to call a beverage a carbonated fruit drink does not answer a classification or tax-liability issue in the statutory sense. The authority therefore declined to answer the questions that did not fall within the permitted heads of advance ruling.

Conclusion: The question was not maintainable within the advance ruling jurisdiction and was left unanswered.

Issue (ii): Whether the product "K Juice Grape" was classifiable as fruit pulp or fruit juice based drink under heading 2202 90 20, or as "other" under heading 2202 10 90, and the applicable rate of tax.

Analysis: The product was found to contain substantial water, sugar, grape juice, carbonation, flavouring and preservatives. On the FSSAI classification adopted in the ruling, it answered the description of carbonated fruit beverages or fruit drinks and not thermally processed fruit juice. The Customs Tariff and explanatory notes were applied to distinguish fruit juices of heading 2009 from diluted beverages of heading 2202. Since the product was not principally fruit juice and was a flavoured, carbonated beverage, it was held to fall under the residual category of heading 2202 10 90 rather than fruit pulp or fruit juice based drinks. The notified rate for goods under the relevant tariff entry was applied accordingly.

Conclusion: The product was classified under CTH 22021090 as "Other" and attracted 14% CGST and 14% SGST.

Final Conclusion: The ruling rejected the claim to classify the product as fruit pulp or fruit juice based drink and confirmed its treatment as a carbonated flavoured beverage under the residual tariff entry with the corresponding GST rate.

Ratio Decidendi: Where a beverage contains substantial added water and is prepared as a carbonated flavoured drink rather than as fruit juice retaining its original character, it is classifiable as a beverage under heading 2202 and not as fruit pulp or fruit juice based drink under the specific fruit-juice entry.

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