AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (12) TMI 724
X X X X Extracts X X X X
X X X X Extracts X X X X
....04 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of Section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 5. At the outset, we would like to make it clear that 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. 1. M/s Abhithanjali Traders, No. 621, Kattu Valavu Kilakku, Namagiripet Post, Rasipuram TK, Namakkal, Pincode 637406 (hereinafter referred to as The Applicant), a GST Registrant, is a Partnership firm under the Administrative control of Centre and is engaged in trading of grains and pulses for Feed....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... HSN code of 0207 1200 [Not cut in pieces] and HSN Code 0207 1400 [Cuts and Offal]; * Where frozen chicken is pre-packed and labelled, GST is applicable at the rate of 5% with effect from 18.07.2022 and where frozen chicken is not prepacked and labelled, then supply of the same is exempted; * Notification No. 6/2022-CT (R) and Notification No. 7/2022-CT (R) dated 13.07.2022 have inserted an explanation to the Rate Notification No. 1/2017 and Exemption Notification No. 2/2017 respectively, for defining the term "pre-packaged and labelled" as follows:- * The expression 'pre-packaged and labelled' means a 'pre-packaged commodity' as defined in clause (I) of section 2 of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder. * Based on the said definition, commodities to mean pre-packed and labelled commodities possessing the following two attributes:- a. Pre packaged commodity as defined in the Legal Metrology Act, 2009; and b. Package in which the commodity is pre-packed or the label affixed to the package is required to bear the declarations under the provisions of Legal Metrology Act. * As per Section 2(1) of Legal Metrology Act, "pre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sumed by the institutional consumer ultimately the supply is exempted. 3.2 Based on the above, the Applicant interpreted that the supply to be made by them viz.- * supply of frozen chicken contained in a wholesale bag of 30 Kgs. Containing 15 small packs of 2 Kgs each made directly to institutional consumers such as the Indian Army, Ministry of Defence, The Park Hotel, Chennai etc. is exempted vide SI. No. 9 of Notification 2/2017-CT (R) against HSN 0207, "All goods other than fresh or chilled, other than prepackaged and labelled". * supply of frozen chicken contained in a wholesale bag of 30 Kgs. Containing 15 small packs of 2 Kgs each made to a distributor who would further supply to institutional consumers such as the Indian Army, Ministry of Defence, The Park Hotel, Chennai etc. is exempted vide SI. No. 9 of Notification 2/2017 CT (R) against HSN 0207, "All goods other than fresh or chilled, other than pre-packaged and labelled" * supply of frozen chicken contained in a wholesale bag of 30 Kgs. Containing 15 small packs of 2 Kgs each made to non-institutional consumers the same would be taxable at 5% as per Sl. No. 1 of Schedule I to Notification No. 1/2017-CT (R) as ame....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vy. * There are no pending proceedings in their jurisdiction on the issue raised by the applicant in the application filed by them. 6.1 The Applicant, after consent, was given an opportunity to be heard in person on 16.08.2023. Shri K. Praveen Kumar, Chartered Accountant, who is the Authorized Representative of the Applicant appeared before the Authority and reiterated the submissions made in the application and stated that presently they are trading only chilled products. The Authority directed the applicant to submit copies of purchase and sales invoices of chilled chicken and agreement, if any, entered with M/s. Shanthi Feeds Private Limited, Coimbatore. The Applicant, vide email dated 22.08.2023, submitted copies of few purchase and sales invoices of chilled chicken. They further stated that no agreement was entered into by them with M/s. Shanthi Feeds Private Limited. DISCUSSIONS AND FINDINGS 7.1 We have carefully considered the submissions made by the applicant in the advance ruling application, the additional submissions made during the personal hearing and the comments furnished by the Centre and State Tax Authorities. The applicant filed advance ruling application und....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... commodity is pre-packed or a label securely affixed thereto is required to bear the declarations under the provisions of the Legal Metrology Act, 2009 (1 of 2010) and the rules made thereunder.' From the above, it is evident that if the product is pre-packed and labelled, exemption from levy of GST is not applicable. 8.2 It is pertinent to sec the Section 2(1) of Legal Metrology Act, 2009, which defines "pre-packaged commodity" as follows: "pre-packaged commodity" means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity;" 8.3 From the facts narrated by the Applicant in their ARA application, we are of the view that the impugned product viz. frozen chicken is a 'pre-packaged commodity' as per the Legal Metrology Act 2009 or a 'pre-packaged and labelled' goods as per the explanation given in Notification No. 2/2017-CT (Rate) dated 28.06.2017 as amended. 8.4 Pursuant to the Legal Metrology Act, 2009, Legal Metrology (Packaged Commodities), Rules 2011 has been issued in respect of declarations to be made on the packaged comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....acturer or from an importer or from wholesale dealer for use by that institution and not for commercial or trade purposes.' 8.10 From the plain reading of the above definition, it means that the packaged commodities, firstly, should bear a declaration not for retail sale', secondly, it is meant exclusively for use by that institution; and thirdly, it is not for commercial or trade purposes. 8.11 From the facts enumerated and the photographs submitted by the Applicant, we find that a declaration that 'packed exclusively for institutional sale, not for retail sale' will be affixed on the bag. Hence the first condition is met. We also find that the proposed sale is being made by the wholesale dealer/trader, in this case, the Applicant. Coming to the last condition, we find that such sale proposed to be made by the Applicant, should also establish that it is not for commercial or trade purposes even though it is meant for use by that institution. As per the facts submitted by the Applicant, they intend to supply to institutional consumers such as The Indian Army, Ministry of Defence, The Park Hotel, Chennai etc. We find that in the case of supply to The Park Hotel, Chenna....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t provisions in GST. A supplier availing threshold exemption or composition scheme would be entitled to exemption or composition rate, as the ease may be, in usual manner. 8.13 Applying the ratio of the above clarifications read with the provisions of the Legal Metrology Act, 2009, mentioned supra, the supplies made to the distributor meant for non-institutional consumers, will fall under the exclusion clause of the exemption Notification No. 02/2017-CT(Rate) dated 28.06.2017(i.e. pre-packaged and labelled). 8.14 As regards, the rate of GST applicable to the impugned supply, the Notification No. 01 /2017-CT (Rate) dated 28.06.2017 as amended, reads as follows under Schedule I (GST@ 5%); S.No Chapter / Heading / Sub-heading / Tariff item Description of Goods 1 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210 All goods (other than fresh or chilled], pre-packaged and labelled; Explanation. - For the purposes of this notification, - (i) The phrase "unit container" means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such pac....