Page 199 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. 301
2202 10 - Waters, including mineral waters and aerated waters,
containing added sugar or other sweetening matter or
flavoured :
2202 10 10 --- Aerated Waters 1
2202 10 20 --- Lemonade 1
2202 10 90 --- Other 1
- Other :
2202 91 00 -- Non-alcoholic beer
2202 99 -- Other :
2202 99 10 --- Soya milk drinks, whether or not sweetened or fla- 1
voured
2202 99 20 --- Fruit pulp or fruit juice based drinks 1
2202 99 30 --- Beverages containing milk 1
2202 99 90 --- Other 1

It is apparent that Tariff Heading 2202 at sub-heading level (at 6 digit level) is
same in the Customs Tariff and Harmonised System of Nomenclature, though
the sub-headings have been further divided in the Customs Tariff. Therefore, the
Explanatory Notes can be relied to determine proper classification of the product
under Tariff Heading 2202. Hon’ble Supreme Court in the case of L.M.L. Ltd. v.
Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21-9-2010
reported in 2010 (258) E.L.T. 321 (S.C.)] has held that there can be no doubt that
the HSN Explanatory Notes are a dependable guide while interpreting the Cus-
toms Tariff.
12. In the backdrop of the aforesaid factual and legal position, we pro-
ceed to examine whether the product ‘Fanta Fruity Orange’ being manufactured
and supplied by the appellant is appropriately classifiable under sub-heading
2202 10 or under Tariff Item 2202 99 20 or 2202 99 90. The findings of the GAAR
as well as grounds of appeal are also discussed at appropriate places.
Sub-heading 2202.10 :
13.1 As per Explanatory Notes of HSN for sub-heading 2202 10, it in-
cludes beverages such as orangeade, consisting of ordinary drinking water,
sweetened or not, flavoured with fruit juices or essences, or compound extracts;
that they are often aerated with carbon dioxide gas, and are generally presented in
bottles or other airtight containers.
13.2 On examining the contents of the product ‘Fanta Fruity Orange’,
as submitted by the appellant and appearing on the label of the product, it con-
tains Carbonated Water, Sugar, Sweetener, Orange Juice Concentrate and added
Orange flavours (natural and nature-identical flavouring substances). ‘Fanta
Fruity Orange’ also contains Acidity Regulator, Preservatives, Stabilizers and
permitted synthetic food colour. The product ‘Fanta Fruity Orange’ is presented
in the PET bottles.
13.3 Thus, on going through the Explanatory Notes of HSN and the
contents of the product ‘Fanta Fruity Orange’ it is evident that the product ‘Fanta
Fruity Orange’ fully conforms to the description given in Explanatory Notes of
HSN for sub-heading 2202 10. Therefore, the said product is found to be appro-
priately classifiable under sub-heading 2202 10.
14.1 The appellant has submitted that the organization and scheme of
GST LAW TIMES  14th May 2020  199