Page 119 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : RICH DAIRY PRODUCTS (INDIA) PVT. LTD. 565
o From a perusal of the manufacturing process of product in
question, it can be seen that apart from Lime juice/Orange
juice, they use Carbon dioxide as one of the ingredients to
manufacture which is added merely for preservation of the
beverage and not for any other purpose. It is 5.00%/2.50%
Orange/Lime juice which gives the beverage its essential
character and forms the base of the beverage.
o Reliance is placed on the Carbonated Soft Drinks : Formula-
tion and Manufacture, Edited by David P. Steen and Philip R.
Ashurst, 2006 and also on Chemistry and Technology of Soft
Drinks and Fruit Juices, Second Edition, edited by Philip R.
Ashurst, Ashurst and Associates, consulting Chemists for the
Food Industry, Hereford, UK, 2005 by Blackwell Publishing
Ltd. and stated that Carbon dioxide is a very effective pre-
servative, as it inhibits growth of micro-organisms in the bev-
erage and the Carbon dioxide is for preservation purposes.
o Applying the hierarchical classification, as set out in the gen-
eral explanatory notes to the present case, since lemonade
figures under “---” under 2202 10 20, it has to be a sub-
classification of the immediately preceding single dash,
which is 2201 10. Thus, unless the products satisfy the de-
scription of single dash 2202 10 as “Waters including mineral
waters and aerated waters, containing added sugar or other
sweetening matter or flavoured”, they cannot be classified
under the three dash 2202 10 20 or 2202 10 90. If the flavour-
ing element or agent is lime or lemon and are not bought and
sold and commercially known as waters with flavouring el-
ement as lime or lemon, those products cannot fall for classi-
fication under 2202 10 20, since they would fail the test of
classification under 2202 10. Accordingly, the products in
question are not classifiable under Tariff Item 2202 10 20 and
2202 10 90 respectively as they do not satisfy sub-heading
2202 10.
 As per the General Rules for interpretation, the products in question
are classifiable under Tariff Item 2202 99 20 -
o there is a specific entry in the Tariff for “fruit pulp/fruit juice
based drinks”. Therefore the products in question clearly sat-
isfies the description of this entry and is accordingly, classifi-
able under Tariff Item 2202 90 20, by virtue of Rule 3(a) of
GIR.
o Assuming both the headings pertaining to ‘Lemonade’ and
the ‘fruit pulp/fruit juice based drinks’ are equally specific on
account of presence of the lime juice concentrate therein, the
product would be classifiable under 2202 90 20 by virtue of
Rule 3(b) of GIR
 As per the Common Parlance Test, the products in Question are
classifiable under Tariff Item 2202 99 20 -
o understanding of the product in common parlance could be
gauged from the way the product in question is marketed.
GST LAW TIMES  28th May 2020  119