Order No. 36, dated 5-8-2019

PJ/Case Law/2019-2020/3545

Case:In Re: Atul kumar rajpal ( GST AAR Uttar Pradesh)

Citation:2020 (32) G.S.T.L. 624 (A.A.R. - GST - U.P.),

Order No. 36, dated 5-8-2019

Issue:Whether applicant is eligible for reduced rate of 5% on Namkeen product duly packed and sealed in printed pouches with the details of the manufacturer on the packaging.

Brief facts: The applicant plans to manufacture and sell Namkeen duly sealed and packed in printed pouches containing the details of the manufacturer. The applicant in his application sought clarification and Advance Ruling regarding the present applicable CGST & SGST tax rates on their final product and whether their proposed plan to sell the said final product on payment of tax @5% is legal or not. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/ verification report and the applicant was granted an opportunity to be heard in person.

Respondent’s Contention and Judgement:The Authority for advance ruling has submitted with regard to the first question that goods described under chapter /heading /subheading /Tariff item 210690 as Namkeens, bhujia, mixture, chabena, and similar edible preparations is ready for consumption form. As such it can be observed that the impugned goods are more appropriately classifiable under Heading 2106 90 from the details provided by the applicant and as per current tariff 12% IGST or (6% CGST & 6% SGST) is applicable on 2106 90.

Analysing the second question the authority has referred to the following provision

“Vide Notification 34/2017-Central Tax (Rate), dated 13-10-2017 the

words “other than those put up in unit container and, -

(a) bearing a registered brand name; or

(b) bearing a brand name on which an actionable claim or enforceable right in a Court of law is available [other than those where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]”, were substituted.”

The applicant will be eligible for payment of reduced rate of duty of 5% if he voluntarily foregoes the enforceable right to such brand

Comment:The applicable CGST & SGST tax rate on the final product i.e. “Namkeen” duly packed and sealed in printed pouches will be 12% GST (i.e. 6% CGST + 6% SGST ). Further it was held that if the applicant voluntarily foregoes the enforceable right to such brand name then, selling the final product @ 5% shall be considered legal.

Prepared by: SAKSHI JAIN

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PJ/Case Law/2019-2020/3545

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