2018 (7) TMI 1333

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and similarly whole chicken of different weight and size is also supplied in frozen State. The packing and dispatch pattern for both mutton and chicken is claimed to be as under:- (i) Mutton Each frozen carcass is put in LDPE bag (primary packing) which is not sealed and no weight is mentioned on such LDPE bags. Thereafter, generally two of such LDPE bags are put in HDPE bags (secondary packing) and manually the weight of both the packed carcasses is mentioned on the secondary packing by a marker. (ii) Poultry Each frozen chicken is packed in LDPE bug (primary packing) which is not sealed and no weight is mentioned on such LDPE bags. Thereafter, such LDPE bags are put in HDPE hags (secondary packing) which do not contain fixed number o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly of goods in unit container. Record of Personal Hearing The applicant was afforded a personal hearing for 09.04 2018. The issue raised by the applicant for advance ruling, whether their product can be said to be packed in unit container to fall under the scope of notification no. 1/2017 or 2/2017-Integrated Tax (rate) dated 28.06.2017 and further under the scope of notification no. 43/2017 or 44/2017 - Integrated Tax (rate) dared 14.11.2017 is covered under the scope of section 97 of CGST/HGST Act 2017 and therefore, the application was admitted. As regard classification of their product, the departmental representative had stated that the applicant firm is packing the animal carcasses and the whole chicken in bags for supplying to the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in a 'unit container, it would be exigible to tax @12%. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government vide notification no. 2/2017-lntcgraled Tax (rate) New Delhi dated 28.06.2017 has exempted, Inter-State supplies of goods, from the whole of the Integrated tax leviable thereon. Relevant extract is reproduced below: Schedule- Sr. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 10. 0204 Meat of sheep or goats, [other than frozen and put up in unit containers] 7. 0207 Meat and edible offal, of the poultry of heading 0105, [other than frozen and put up in unit containers.] W.e.f. from 15th November, 201....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Integrated Tax (rate) New Delhi dated 14.11.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduced below: Schedule- Sr.No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 1. 0204 0207 All goods, fresh or chilled 2. 0204 0207 All goods (other than fresh or chilled) and put up in unit container and- (a) bearing a registered brand name; (b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been voluntarily], subject to conditions as in the annexure I]"; A conjoint reading of the extracts of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....chicken is packed in LDPE bag (primary packing) which is not sealed and no weight is mentioned on such LDPE bags. Thereafter. such LDPE bags are put in HDPE bags (secondary packing) which do not contain fixed number or primary packing and also no quantity is mentioned. Thus, the packing of the frozen carcasses and chicken done by them is only a medium of delivery and since these are not in pre-determined units, these packing cannot be termed as 'Unit Containers' To substantiate their view regarding unit container the applicant had cited several case laws. Reliance is placed on the case of CCE. Vs Shalimar Super Foods [2007 (210) ELT 695 (Tri-Mumbai) and Surya Agro Oils Ltd. vs CCE, Indore, 2000 (116) E.L.T. 514. In CCE. Vs Shalima....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Tax (Rate) dated 28th June 2017 a unit container means a package, whether or small (for example tin, can, jar, box, bottle, bag, carton, drum. barrel or canister) designed to hold a pre-determined quantity or number, which is indicated on such package. The explanation itself suggests that the make of the container should be such which can hold a predetermined quantity or number. It should he such that when packed it holds the predetermined quantity or the number for which it is designed. As shown to us the packaging by the applicant can weigh 10 Kgs or 11 Kgs or for that matter 10.5 or 10.25 kgs. depending upon the weight of two frozen carcasses or weight or 20-25 frozen chickens, as the case may be, packed in secondary packaging. Neither ....