The Ahmedabad bench of the Customs, Excise And Service Tax Appellate Tribunal ( CESTAT ) held that nutrition/dietary supplements attract Integrated Goods and Service Tax ( IGST ) at rate of 18 %. The Tribunal viewed that the appellants have correctly declared their goods under Serial No. 453 and/or 23 of Schedule III of Notification No. 1/2017- Integrated Tax (Rate) which attracts 18% of IGST.
The goods imported by the appellant, Bright Performance Nutrition for IGST fall under Schedule IV Serial No. 9. The goods of the same chapter heading are partly covered under serial No. 453 and/or 23 of Schedule III which attracts 18% IGST and partly under serial No. 9 of Schedule IV of Notification No. 1/2017- Integrated Tax (Rate) dated 28-06-2007.
The goods mentioned in serial No. 9 are not general but some specific items for the reason that the entry appeared therein read as food preparation not elsewhere specified or included i.e. Protein concentrates and Textured Protein Substances, etc. He submitted that only the goods described in entry No. 9 are covered under Schedule IV of notification and the goods other than those specified therein will not fall under serial No. 9 but the same are appropriately covered under serial No. 453 and/or 23 of Schedule 3 of the notification which attracts 18% IGST. Therefore, the appellant’s declaration under serial No. 453 and/or serial No. 23 is correct. Hence the entire case of the department fails on this ground alone. He also reiterated the grounds of the appeal.
On the other hand, Shri Rajesh Nathan, Assistant Commissioner ( AR ) appearing on the behalf of the Revenue reiterated the finding of the impugned order. He submitted that the goods of Tariff Item No. 2169099 which are not elsewhere specified or included, are covered under serial No. 9 of schedule IV. Therefore, the correct IGST rate is 28%. Hence, the impugned order is proper which does not required any interference.
The appellant have declared their goods namely Nutrition/ Dietary supplements under Tariff Item No. 21069099 and paid IGST @ 18% under Serial No. 453 or 23 of scheduled III of Notification No. 1/2017- Integrated Tax (Rate) dated 28.06.2017. The case of the department is that the said goods are covered under Serial No. 9 of Schedule IV of the said notification which provided for IGST at the rate of 28%.
The Adjudicating Authority is of the opinion that the goods in question is not instant food mixes, hence not falling under Serial No. 23 of Schedule III and also not falling under serial No. 453 of Schedule III. Therefore, it falls under serial No. 9 of Schedule IV as food preparation not elsewhere specified or included. From the close reading of the above entries, we find that as per the description given at serial No. 9 of Schedule IV only certain specific items are covered, for the reason the word “i.e.” is suffixed with “food preparations not elsewhere specified or included”.
A two-member bench of Mr Ramesh Nair , Member (Judicial) and Mr Raju Member, (Technical) viewed that the appellants have correctly declared their goods under Serial No. 453 and/or 23 of Schedule III of Notification No. 1/2017- Integrated Tax (Rate) which attracts 18% of IGST. Therefore, the impugned order is not sustainable.
While allowing the appeal, the Tribunal set aside the impugned order. Shri Pramod Kedia, Chartered Accountant appeared for the Appellant and Shri Rajesh Nathan, Assistant Commissioner (AR) appeared for the Respondent.
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