TaxTMI 
TaxTMI 
2022 (5) TMI 123
X X X X Extracts X X X X
X X X X Extracts X X X X
....vice Tax Act, 2017 (here in after referred to as "the CGST Act and UKGST Act") by M/s Windlas Biotec Ltd, 40/1 Mohabewala Industrial Area, Dehradun, Uttrakhand (herein after referred to as 'Applicant') against the Advance Ruling Order 04/2021-22 dated 02.09.2021 passed by the Authority for Advance Ruling of Uttarakhand in an application made by them. At the outset, we would like to make it clear that the provisions of the CGST Act and UKGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to CGST Act would also mean a reference to the same provisions under the UKGST Act. Brief facts of the case: i. The applicant is registered with the GSTIN having ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing for the state of Uttarakhand, applicant has filed the instant appeal dated 20.11.2021, seeking the said product to be classified under chapter 3004 of the GST Tariff Act, 2017 in as much as the said product contains less protein in comparison to other players in the market and they are manufacturing the said product in Fixed Dose Combination as approved by Drug Controlling & Licencing Authority (Mfg.) of Uttarakhand. Personal Hearing In the instant case, the personal hearing was fixed on 05.01.2022 and it was attended by Shri Rajesh Gupta F.C.A, LLB on behalf of the applicant and he reiterated the submissions made in the memorandum of appeal during PH. Ms. Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer from Stat....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... holds FSSAI license also which further fortifies the fact that product in question is a food supplement. Applicant's submission that doctor's prescription is needed for buying product holds no merit as product being in food supplement category like any other protein mix powder can be bought over the counter without doctor's prescription. Therefore, Ld. Authority for Advance Ruling has appropriately held that taxability is decided as per HSN code of the said product and not as per the license issued for manufacture of the said product. Therefore, for all the above reasons the product in question should be classified under heading 2106 attracting tax @ 18%. Discussion & Findings We have gone into the Ruling of AAR, memorandum of appeal and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed. The applicant's contention that the AAR has gone beyond the jurisdiction in rejecting the product approval as granted by the drug authority is not correct as there is error on the face of record of the certificate dated 05.04.21 as stated above. We therefore uphold the rejection of the same by AAR. As far as the "Prophylactic Use" of the product is concerned it is hereby made clear that once the certificate dated 05.04.21 is not in consonance with the schedule C, whether the product is for "Prophylactic Use" or not is not relevant as it is a food product in terms of FSSAI License bearing number 10018012000504 dated 16.06.2020. Moreover, for the food products FSSAI license is mandatory and food department is the competent authority. As....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e label showing a glass containing the preparation of the said product clearly gives the image of a food beverage like Bournvita or Coffee and other various product available in market now-a-days. Taking into view the totality of the label, the whole thrust is on the food value of the product, it's flavour, deliciousness, richness, nourishment, attractiveness and all other qualities for which normal people look to the food for their health, growth and taste. Easy preparation of the said product is also emphasized. Moreover, generally allopathic medicines are consumed by the patients in the form these are available in the market and no such preparation at the level of patients is left. Such preparations are made rather mostly in the case of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is a clear indication of the classification of these products. As per Rule 2 of General Rules for the Interpretation of the Harmonized System, the classification of goods consisting of more than one material or substance shall be according to the principle contained in Rule 3. As it is not confined to any of the titles, of Sections and Chapters and as it consists of more than one material or substance, Rule 3 of interpretation becomes applicable. Rule 3(b) of General Rules for the Interpretation of the Harmonized System reads as follows: "Mixtures, composite goods consisting of different materials or made up of different components and goods put up in sets which cannot be classified by reference to (a) shall be classified as if they cons....