TaxTMI 
TaxTMI 
2023 (12) TMI 724
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....dvance ruling have changed. 4. In terms of Section 104 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 Cen....
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.... 0^oC to 4°C which carries a HSN code of 0207 1100 [Not cut in pieces] and HSN Code 0207 1300 [Cuts and Offal]. Meat is frozen when it attains a temperature of -18°C or below which carries a 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 Le....
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.... FAQ No. 7 of press release dated 18.07.2022 clarified that supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of Rule 3(c) of Chapter II of Legal Metrology (Packaged Commodities) Rules, 2011 i.e. the exemption is end used based exemption, if it is meant for and consumed 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. i....
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....of Legal Metrology (Pacakaged Commodities) Rules, 2011. Therefore, if supplied in such manner as to attract exclusion provided under the said Rule 3(c), it will not be considered as pre-packaged and labelled for the purposes of GST levy. • Therefore, frozen chicken pre-packaged and labelled when supplied to institutional consumers is exempt for the purposes of GST levy and when the said supply is made to non-institutional consumers it attracts 5% levy. • 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, submitte....
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....d below: S.No Chapter / Heading / Sub-heading / Tariff item Description of Goods 9 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210 All goods [other than fresh or chilled), other than prepackaged and labelled Explanation. - For the purposes of this Schedule, - ................... '(ii) 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) where, the package in which the 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....
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....ned in a wholesale bag of 30 kgs containing 15 small packs of 2 kgs each made to institutional consumers such as The Indian Army, Ministry of Defence, The Park Hotel, Chennai etc., either directly or to a distributor who would further supply to institutional consumers or to non-institutional consumers. 8.9 Here it is pertinent to sec the definition of 'institutional consumers'. As per Rule 2(bc) of the Packaged Commodities Rules 2011, "Institutional Consumer" means,- 'the institution which buys packaged commodities bearing a declaration 'not for retail sale', directly from the manufacturer 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&....
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....or. These individual packs of 10kg each are meant for eventual sale to retail consumer. 5. At what stage would GST apply on such supplies, i.e., whether GST would apply on specified goods sold by manufacture/produce to wholesale dealer who subsequently sells it to a retailer? GST would apply whenever a supply of such goods is made by any person, i.e. manufacturer supplying to distributor, or distributor/dealer supplying to retailer, or retailer supplying to individual consumer. Further, the manufacturer/wholesaler/retailer would be entitled to input tax credit on GST charged by his supplier in accordance with the Input Tax Credit 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....