Nutritional Supplements used for preparations of Creatine, Nitrates, Glutamine and Amino Acids Attracts 18% of IGST Rate under GST Notification: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Nutritional Supplements imported by the assessee which are used for preparations of substances such as Creatine, Nitrates, Glutamine, and Amino Acids attract 18% Integrated Goods and Service Tax (IGST) rate under Goods and Service Tax (GST) Notification. 

Neuvera Wellness Ventures P. Ltd, the appellant assessee imported nutritional supplements which are used for the preparations of substances such as Creatine, Nitrates, Glutamine, and Amino Acid. 

The assessee appealed against the order passed by the adjudicating authority for confirming the differential IGST demand against the assessee for the import of nutritional supplements. 

J.C. Patel and Rahul Gajera, the counsels for the assessee contended that the goods of the assessee would fall under Serial No. 453 of Schedule III of Notification 1/2017-IGST, therefore, the demand of differential duty shall not be sustained and it attracts 18% IGST rate. 

A.R. Kanani, the counsel for the department relied on the decisions made by the lower authorities and contended that not only the product specified or included fall under Serial No. 9 of Chapter 2106 and only specific items which are specified in the entry are covered under the entry. 

The Bench observed that there was no dispute that the physical assessment of the bill of entry was made by the proper customs officer and the assessee had declared the goods correctly as per the documents and claimed the exemption of IGST rate in terms of Serial No. 23 and 453 of Schedule III of Notification 1/2017. 

The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) held that the nutritional supplements would attract an 18% IGST rate. 

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