Page 120 - GSTL_ 28th May 2020_Vol 36_Part 4

566 GST LAW TIMES [ Vol. 36
Reliance is based on the decision of Hon’ble Supreme Court
in the case of CCE v. Connaught Plaza Restaurant (P) Ltd. [2012
(286) E.L.T. 321 (S.C.) and CCE v. Wockhardt Life Sciences Ltd.
[2012 (277) E.L.T. 299 (S.C.)].
o In case of “Licta Cola” and other products, the label reads as
“Contain Fruits”. Thus the intent of the appellant in labelling
the product in this manner depicts the fact that the product is
marketed as ‘fruit juice based beverages’ and not merely as
flavoured water. The products in question is purchased by
consumers considering it as a fruit juice-based drink, unlike
the other aerated beverages marketed under the various
brand names, which are commonly understood as ‘soft
drinks’ or flavoured aerated water. The same is also support-
ed by the fact that the products are covered by FSSAI Regula-
tion 2.3.30 and are labelled as ‘carbonated beverage with fruit
juice’.
Personal Hearing :
5. The Appellant was granted personal hearing as required under law
before this Appellate Authority on 22nd January, 2020. The Authorized repre-
sentatives of the Appellant Shri R. Raghavan, Ms. R. Sahana, Shri B. Venkatra-
man Advocates and Authorized representatives and Shri M. Elangovan of the
appellant company appeared for hearing. They reiterated the written submis-
sions filed along with the Appeal. They submitted a compendium of statutory
provisions and case laws relied upon by them. They undertook to submit a writ-
ten synopsis on the arguments made including on the fitment prevailing and the
change solicited within a week’s time.
6. The appellant as undertook during the hearing furnished a written
submission on 30-1-2020. They have inter alia stated that :
 The product merits classification under CTH 2202 99 20 by virtue of
qualifying as a ‘Carbonated beverage’ which is distinct from ‘Wa-
ters’/‘Carbonated water’.
o A perusal of Heading 2202 would indicate that it is divided
into two sub-headings; the first one covers ‘waters, including
mineral waters and aerated waters, containing added sugar
or other sweetening matter or flavoured’, while the second
group covers ‘Other’.
o In terms of the General Explanatory Notes, for any article to
be classified or covered under three dash “---”, it has to first
fall under the immediately preceding single dash “-” or dou-
ble dash “--” Lemonade/others falling under 2202 10 20/
2202 10 90, accompanied by three dashes “---” is thus, a sub-
classification of the immediately preceding single dash “-”
viz., 2202 10 which relates to waters containing added sugar
or other sweetened water or flavoured. Thus, for a product to
be classified under 2202 10 20/2202 10 90 it must firstly be in
the nature of waters.
o It follows that products which are not essentially in the na-
ture of waters, would not fall for classification under 2202 10
20/2202 10 90. HSN Explanatory Notes of CTH 2202 also
supports the said contention. Further, the said view is also
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