TaxTMI 
TaxTMI 
2023 (1) TMI 978
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....d or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab-initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. MADURAI FAMOUS JIGARTHANDA LLP, No.4/799, Thasildhar Nagar, Vandiyur, Madurai-625020 (hereinafter called the Applicant) are registered under GST with GSTIN:33ABMFM3879J1ZP. The applicant has sought Advance Ruling on the following questions: 1. Whether the product manufactured as pasteurized milk and milk cream but named "Jigarthanda" can be classified as Jigarthanda under description of goods? 2. Is the goods taxable or exempted? 3. If exempted, HSN of the product and rate of tax on product. 4. If taxable, HSN of the product and rate of tax on product. 1.2 The Applicant has submitted the copy of application ....
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....ion and invoice copies. 3.2 The applicant vide letter dated 02.06.2022 submitted the following documents: • Detailed write up on the ingredients used and manufacturing process of "JIGARTHANDA": They have stated that their products are sold under three flavours /key ingredients: i. Jigarthanda ii. Milk Kova with Jigarthanda iii. Basundhi ("Palaadai"-milk cream) 3.3 They have stated that their product is sold under the name "JIGARTHANDA", where it was named by their ancestor who had prepared JIGARTHANDA during their olden days. The manufacturing process involves the following steps: i. Receiving raw milk in silos ii. Pasteurization: Raw milk that has been heated to a specified temperature and time to kill pathogens that may be found in the raw milk (90°c for 10minutes) iii. Sugar Syrup Preparation: Sugar and nannari syrup are added in boiling water which is made to boil for some time to make the sugar syrup. This is for sweetening and flavoring the `Jigarthanda' iv. Milk cream (Basundhi-Paaladai) preparation: Pasteurized milk is boiled for collecting fresh milk cream. This process is do....
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....ce issued to dealers outlet through refrigerated vehicle. Mixing of various ingredients takes place at the sales outlet, since jigarthanda has no shelf life after mixing. Milk Cream also known as Basanthi used as an ingredient in the preparation of Jigarthanda is also sold separately as Basanthi with GST. 3.8 The Advocates in the written submission, inter alia, stated that Jigarthanda cannot be said as 'Beverage of Milk' as it is excluded as per the Explanatory Notes to Chapter 22 of HSN; the ratio of ingredients in Jigarthanda is Milk cream 50%, Badam Pisin 35% and Pasteurized milk added with sugar and nannari syrup 15%; since, Milk cream and Badam Pision are in solid consistency, pasteurized milk is added to make it semi solid; Sugar, Milk cream, Badam Pisin, Nannari and Milkkova attract 5% GST and Milk 0% GST are mixed toghther and served as Jigarthanda would qualify as 'mixed supply and attract 5% GST. Currently, 5% GST is being collected on 1. Jigarthanda, 2. Jigarthanda with Milkkova scoop and 3. Basundhi (Milk Cream - Paladai). 4. The Centre Jurisdictional Authority, Madurai Commissionerate, who has administrative jurisdiction over the applicant was address....
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....s attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. Jigarthanda manufactured by using various ingredients or inputs is in the form of semi-solid form, as stated by the applicant, satisfies the definition of "goods" and accordingly, we hold that "Jigarthanda" is goods. 8.2 We next take up the classification of Jigarthanda. We find that the classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which in turn is based on Harmonized System of Nomenclature, popularly known as 'HSN'. The rules of interpretation, section notes and chapter notes as specified under the Customs Tariff Act, 1975 are also applicable for classification of Goods under GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable would be arrived at on the basis of notifications issued under GST by the respective Governments. 8.3 The applicant has claimed that `Jigarthanda' is pasteurized milk with added sugar-nannari syrup, patham-pisin and milk cream (paladai) classifiable under HSN 0402 of Customs Tariff Act, 1975, wh....
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....hat pasteurized milk is added with various ingredients, such as badam pisin, milk cream (basundi), milk kova, sugar syrup obtained by nannari syrup added in boiling water with sugar for flavor and sweetener. Therefore, 'Milk and Cream' referred to in HSN 0402 and Jigarthanda manufactured by the applicant are not the same and on this ground alone the product Jigarthanda is not covered under HSN 0402. Further, the relevant explanatory notes of CTH 0402 of the HSN clearly state that beverages consisting of milk flavoured with cocoa or other substances is specifically excluded from this chapter heading. 8.5 The applicant categorically stated that their product "Jigarthanda" is not fermented milk, but pasteurized milk product. Therefore, classification of Jigarthanda under HSN 0403, which covers goods subjected to fermentation of milk, does not arise. 8.6 As the explanatory note of HSN 0402 does not cover beverages consisting of milk flavoured with cocoa or other substances covered under heading 22.02, the relevant chapter notes, tariff entry and HSN Explanatory note of HSN 2202 is given below to decide the appropriate HSN for Jigarthanda. 2202 - WATERS, INCLUDING....