TaxTMI 
TaxTMI 
2024 (11) TMI 775
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....on 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 Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein after referred to as the 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 Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. IDYA, No. 349, Canal Road, Kilpauk, Chennai 600 010 (hereinafter referred to as 'the Applicant') is engaged in the manufacture of Natural Anti-Oxidant Water. They are registered under the GST Acts with GSTIN: 33FNOPS0299M1Z4. 2. They have filed an application seeking Advance Ruling with regard to the product manufactured by them viz ANTIOXIDANT WATER with natural BETEL LEAF extract and natural AJWAIN extract on the following: 1) "We are using HSN 2202 9920, please confirm which is correct or not correct? 2) We are charging tax @ 12% for the products manufactured from end, confirm which....
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....Assistant Commissioner (ST), Kilpauk Assessment Circle reported that- • HSN Code 22029920 is not correct as the HSN code 2202 itself specifies 'WATER INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009. • But the applicant has mentioned their product to be a natural anti-oxidant water with natural betel leaf extract and natural Ajwain extract. Here Ajwain is a fruit and betel leaf as a vegetable clearly does not come under the HSN Code 2202 9920. • Anti-oxidants are found in certain foods and may prevent some of the damage caused by free radicals by neutralizing them. These include the nutrient antioxidants, Vitamin-A, C and E, and the minerals copper, zinc and selenium. Other dietary food compounds such as the phytochemicals in plants, are believed to have greater anti-oxidant effects than vitamins or minerals. These are called the non-nutrient antioxidants and include phytochemicals. Finally, stated that the antioxidants is synonymous with minerals and hence the natural antioxidant water is a....
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....) Compensation Cess II 48 2202 99 20 Fruit pulp or fruit juice based drinks [other than Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice] 6% 6% 12% In view of the above, it is inferred that the classification of 'Natural antioxidant water with Natural Betel leaf extract and Natural Ajwain extract' under HSN 22029920 found to be incorrect as the said item does not contain any Fruit Pulp or Fruit Juice. Further, it is noticed that the said goods may fall under the category of flavoured water, which appears to be rightly classifiable under HSN 2202 1090 "All goods [including aerated waters), containing added sugar or other sweetening matter or flavoured - Others" attracting GST rate of 28% and Compensation Cess of 12%." 10. Personal Hearing: The Applicant, was given an opportunity to be heard in person on 19.08.2024. Shri. Sai Sarvesh, Proprietor of M/s. Idya, who is the Authorized Representative appeared for the hearing and he reiterated the submissions made in their application. He further elaborated the importance and benefits of the products supplied by them and explained the pro....
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.... Use: Flavoured water makes zero calorie flavoured water by infusing organic flavoured extracts in pure water with no sugars, no sweeteners, no preservatives, and no additives of any kind. Many of the plant sources have excellent nutrient and non-nutrient properties which can be exploited to manage clinical conditions. Of all the herbs/spices used within Ayurveda, tulsi, mint, cinnamon, clove, cardamom is well-known, and confirming their beneficial effects. Raw materials: Raw materials used packaged drinking water, Ajwain seeds, and emulsifiers-propylene glycol. 12. DISCUSSION AND FINDINGS: 12.1. We have carefully considered the submissions made by the Applicant in their application, submissions made during the personal hearing conducted on 19/08/2024, further submissions made by the applicant vide mail dated 26/09/2024 and the comments furnished by the Central Tax and State Tax jurisdictional officers. 12.2. We find that the Applicant are manufacturer of ANTIOXIDANT WATER with natural BETEL LEAF extract or natural AJWAIN extract besides certain additives. On perusal of the process description for manufacturing the ANTIOXIDANT WATER, furnis....
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....sp; (1) (2) 2202 WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT, NUT OR VEGETABLE JUICES OF HEADING 2009 2202 10 - Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured : 2202 10 10 --- Aerated waters - 2202 10 20 --- Lemonade - 2202 10 90 --- Other - - Other: 2202 91 00 -- Nonalcoholic beer - 2202 99 -- Other: - 2202 99 10 --- Soya milk drinks, whether or not sweetened or flavoured - 2202 99 20 --- Fruit pulp or fruit juice based drink - 2202 99 30 --- Beverages containing milk - 2202 99 90 --- Other - Hence, the description of goods falling under the Tariff item 2202 99 20 of the Customs Tariff Act, 1975 reveals that the said Tariff entry is relating to Fruit pulp or fruit juice based drink. Whereas the ANTIOXIDANT WATER manufactured by the applicant, does not contain any Fruit Pulp or Fruit ....
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....sions made by the applicant vide mail dated 26/09/2024, We find that in spite of specific request made by this Authority to furnish a copy of the agreement entered into with CSIR-CFTRI, the applicant has not furnished the same, but filed a brief procedure of manufacturing process only, owing to the confidentiality of technical know-how that they had developed with the support of CSIR-CFTRI. However, based on the available records, it is seen that the applicant has used "Betel leaves/Ajwain seeds, propylene glycol, Menthol Crystals dissolved in propylene glycol" as their raw materials in the preparation of stock solutions to be blended with the packaged drinking water. It is to be noted that one of the ingredients used in the preparation of the product is Menthol. In general, menthol is found naturally in oils of several plants of 'Mint' family such as corn mint and peppermint. However, chemically it is a crystalline cyclic alcoholic compound which possesses well-known cooling characteristics and a residual minty smell of the oil from which it was obtained. Because of these attributes it is known to be one of the most important flavouring additives besides vanilla and citrus....