The Andhra Pradesh Appellate Authority for Advance Ruling has held that the Mango Pulp/Puree is chargeable to GST @ 18%, by virtueofentryNo.453ofSchedule iii in notification no. l/2017- Central Tax(Rate).
The Appellant, M/s Foods and lnns Limited is a Public Limited Company, engaged in the business of supplying mango pulp/puree within India including merchant export. The manufacturing process of mango pulp/puree is detailed by the appellant that, they procure selected varieties of fresh mango fruits and transport them to the fruit processing plant. The fruits are inspected, graded, washed, and sent to the controlled ripening chambers. The fully ripened mango fruits are then washed, blanched, pulped, deseeded, centrifuged, homogenized, and thermally processed. The preparation process includes cutting, de-stoning, refining and packing. The refined pulp/puree is packed in cans, hermetically sealed, and retorted. Such extracted Mango Pulp/Puree will be sold by the applicant.
The appellant filed an application before AAR for clarification with regard to the classification of the product and the rate payable thereon. The AAR held that Mango Pulp/Puree shall neither be treated as a fresh fruit nor be classified under headings 20079910 or 0804 or 2008 and also Mango pulp/puree comes under entry no. 453 of Schedule-iii of NotificationNo. 1/2017-Central Tax (Rate) attracts the tax rate of 18%. Aggrieved by the impugned order, the appellant has filed an appeal before AAAR.
The appellant submits that the product Mango Pulp is specifically covered under Chapter Heading 0804. However, the present product is not merely fresh fruit or dried fruit. As already submitted, the mango pulp is processed by pre-heating the product to the tune of 60 to 80 degrees and also sterilized before packing. In view of the above, the appellant alternatively requested the classification of the product under Chapter Heading 2007 because the product exported by the appellant is classified by the Customs under Chapter Heading 2007.
The appellant further submits that technically there is no difference between puree and pulp. In this connection, the appellant draws attention to Office Memorandumdated6thOctober,202lissuedbythe MinistryofFood Processing Industries, which clarifies that Mango Pulp and Puree are one and the same’ classified under Chapter 2007.
While modifying the order passed by the lower authority the Coram of Sri SureshKishnani (Member) (Central Tax) and Sri S. Ravi Shankar Narayan (Member) (State Tax) held that “Each Section and Chapter under the Tariff is accompanied by the notes known as Section Notes and Chapter Notes. Classification is to be determined only on the basis of the description of the heading read with relevant section or Chapter notes. Coming to the product mango Pulp/Puree, it finds a place under chapter heading no. 0804 5040 of the Customs Tariff Act, 1975”. Further held by the authority that, “Whenever a specific entry is available for a product, it has to be adopted in place of the general description. It has been decided by the Honorable Supreme Court in MoorcoIndiaLimitedvsccl994(74)ELT5(SC). Thus, the principle that a specific heading overrides a general heading is well established in tax statutes. The same is applicable as well in the instant case When there is a specific entry for Mango Pulp in chapter 8, it is to be preferred over other general entries in the subsequent chapters”. It was also clarified by the AAAR that, “As there is no specific description of “mango pulp/puree”, under GST tariff notification, the entry no. 453 of Schedule -III of Notification No.1/2017- Central Tax (Rate) is applicable, which is a residuary entry covering goods that are not specified in Schedules I, II, IV, V, VI of the Notification, attracting the tax rate of 18%”
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