Maharashtra AAR Appropriate classification of the Applicant product, Prohance – D (Chocolate) 106 90 50.
What is the appropriate classification of the Applicant’s product, Prohance – D (Chocolate)?
Answer The appropriate of the Applicant product, Proh ance – D (Chocolate) 106 90 50.
MAHARASHTRA AUTHORITY FOR ADVANCE RULING
BEFORE THE BENCH OF
Shri B. Timothy Additional Commissioner of Central Tax Member
Shri B.V Borhade Joint Commissioner of State Tax Member
|GSTIN Number If Any User Id||31AADCS3124KIZD|
|Legal Name of Applicant||Sun Pharmaceutical Industries Ltd.|
|Registered Address / Address Provided while obtaining user id||Sun House Western Express Highway Goregoun (E) Mumbai 400063 Maharashtra India|
|Details of Application||GST ARA Application No. 88 Dated 22.10.2018|
|Concerned Officer||Dy Commissioner of S.T E-611 LTU-VI Mumbai|
|Nature of activity proposed present in respect of which advance ruling sought|
|A- Category||Factory Manufacturing|
|B- Description In brief||The applicant is engaged in the manufacturing & trading of pharmaceutical, pharmaceutical and allied products. The applicant manufactured a certain nutritional product Provenance-D for diabetic people.|
|Issue,s on which advance ruling required||(i) Classification of Goods and Service or both|
|Question on which advance ruling required||As reproduced in para 01 of the Proceeding Below|
Under Section 98 of the Central Goods and Service Tax Act 2017 and The Maharashtra Goods And Service Tax Act 2017
M/S Sun Pharmaceutical Industries Limited (hereinafter referred to as “Applicant’) having its corporate head once at, “SUN HOUSE” West em Express Highway, Goregaon (E), Mumbai-400063 is engaged in the business of manufacturing and trading of pharmaceutical products, nutraceutical and allied products falling under Chapter 28 & 30 of the Customs Tariff Act, 1975 and is registered as per the GST laws.
The Applicant is engaged in the production and marketing of a nutritional powder/food for special dietary use called Prohance – D which is specially designed to serve as a nutritional powder for people with Diabetics. The said product is sold in powder form and is required to be mixed with drinking water and used as a partial meal replacement/Breakfast replacement / Evening snack/healthy bedtime snack or as directed by a Physician/dietician for diabetics. Prohance-D Will be known in the market as “diabetic product” as it is sugar free, low on Gl (Glycemic Index) and contains Isomaltulose – a low glycemic carbohydrate that helps minimize blood sugar spikes (See Exb.-A). In other words, the Prohance -D would be marketed as Diabetic food as well as sold by the applicant specially meant for Diabetic people only.
The said product provides all required macro nutrients as well micro nutrients to a Diabetic person, provides energy from high quality protein & fat, & is rich in dietary fiber and MLJFA (Mono Unsaturated Fatty Acids) that support heart health. The photo of the labels containing the declaration of prohance -D has been enclosed as “Exh – B”. The applicant proposes to produce two variants Of prohance-D, namely
(ii) Prohance-D – Vanilla flavor; and (i) Prohance-D Chocolate navour. Notification No. 10017-central Tax (Rate) dated 3006.2017 provides for applicable rates of GST the supply of goods. Sl. No. 46A of Schedule – Il to Notification No. I ‘2017- Central Tax (Rate) dated CE Rut 017 reads as under:
Reference may further be made to the Food Industries Manual by M.D. Ranken which provides a definition of a “Diabetic Jam”. The said manual defines “Diabetic Jam” as “Diabetic Jum (sorbüol-based) — Diabetic are unable 10 metabolize the sugars nonnally present in jams and marmalades, but they are able to take in sorbirol, a polyhydric alcohol derived from glucose. Specially prepared jams and marmalades are therefore manufactured for diabetics in which sorbitol, usually as a syrup, is used as a direct replacement for sucrose and glucose. The same manufacturing methods are used but il is necessary to increase the quantity ofpectin since pectin/sorbirol gets are weaker than comparable sugar based gels. The Food Safety and Standards Act, 2006 (FSSAI) also makes a reference to “foods for special dietary purposes”. In this regard, it is pertinent here to mention that the Courts in the past have referred to statutes to assist in the classification of a certain product. A judgment on the point is that of Connaught Plaza Restaurant Ltd.”‘. Commissioner Of Central Excise, New Delhi reported at [20031 154 ELT 187 where the court permitted the use Of a Statute (Prevention Of Food Adulteration Act, 1954) for HSN classification. The court accepted the decision in Stale of Maharashtra Vs. Baburao Ravaji Mharulkar, AIR 1985 S.C. 104, where it was observed that:
05. In view of the extensive deliberations as held herein above, we pass an order as follows :
(Under section 98 Of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
Mumbai, dt- 23/01/2019
For reasons as discussed in the body of the order, the questions are answered thus —
Question What is the appropriate classification of the Applicant’s product, Prohance – D (Chocolate)?
Answer The appropriate classification of the Applicant product, Prohance – D (Chocolate) 106 90 50.
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