TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 775
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....ll 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 is correct or not correct?" 3. The Applicant furnished a copy of challan ....
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....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 mineral water. * As the natural antioxidant water which comprises natural vegetable juices and minerals, it has to be classified as below: HSN Code Description Rate (%) Cess (%....
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....r 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 process of making Betel Leaf water which was enclosed by him. The members enquired about the other product namely Ajwain water, the process of which was not enclosed by the applicant. The members further requested the applicant to furnish the detailed write-up of Betel Leaf water and Ajwain water. They were also requested to furni....
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.... 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, furnished by the applicant while filing the Advance Ruling Application and further submissions made during and after the personal hearing, it is noticed that the tender, preferable dark green betel leaves/ Ajwain seeds, after washing and grinding would be subjected to Hydro-distillation and the resultant condensate oil is treated with Sodium Sulphate to remove any water molecule present in the oil to obtain volatile oil. Then this volatile oil is dissolved in p....
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.... 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 Juice. The raw materials utilized in the manufacturing process are extracts of betel leaves/Ajwain seeds dissolved in propylene glycol and Menthol crystals. As observed from the process description furnished by the Applicant and on the facts and circumstances of the case, we are of the view that the classification "2202 99 20" adopted by the applicant is not correct. 13.0 The second question posted before this authority is "Whether the Rate of Tax @12% adopted by the applicant on the above said product is correct?" 13.1 It seems that the applicant has adopted the rate of tax at 12% ....
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....d 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. 13.4. The Propylene Glycol added during the preparation of 'stock solution' is used as an emulsifier and as a binding agent to keep all the ingredients intact. Hence, in addition to natural flavour contained in a betel leaf/ajwain seeds, menthol crystals are added to get a flavour and taste of 'Menthos' in addition to betel leaf/ajwain flavour. From the above, it can be concluded that the product prepared by the applicant is nothing but a 'flavoured drink'. 13.5. In addition, as seen from the Certificate issued by the CSIR - Central Food Technological Research Institute, Mysuru, the nomenclature given by t....