Page 121 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : RICH DAIRY PRODUCTS (INDIA) PVT. LTD. 567
affirmed by the Hon’ble Tribunal Larger Bench in the case of
Brindavan Beverages Pvt. Ltd. [2019 (10) TMI 762 = 2019 (29)
G.S.T.L. 418 (Tri. - LB)].
 Beverage vs. Water
o In order to further substantiate their claim that the impugned
products do not qualify as ‘waters’, reference is made to the
FSSAI Regulations which lays down the standards for vari-
ous articles of food. Regulation 2.3.30 deals with ‘Carbonated
Fruit Beverages or Fruit Drinks”. Further, Regulation 2.10.6
deals with “Carbonated Water”. It is apparent from the
FSSAI regulations that a ‘Carbonated Beverage’ is distinct
from ‘Carbonated Water’. As stated in the Grounds of Ap-
peal, the impugned products manufactured by the Appellant
qualifies as a carbonated beverage with fruit juice as it is
squarely covered by Para 3A of Regulation 2.3.30.
o Once the impugned products qualify as a carbonated bever-
age with fruit juice, it cannot also qualify as a carbonated wa-
ter under Regulation 2.10.6. In this regard, it is submitted that
the Hon’ble Authority for Advance Ruling has acknowledged
the fact Viz., the impugned products manufactured by the
Appellant does not qualify as a carbonated waters in terms of
Regulation 2.10.6. However, the Hon’ble Authority for Ad-
vance Ruling went on to place reliance on the Food Category
System in Appendix A of the FSSAI Regulations and equated
‘Carbonated Fruit Beverages or Fruit Drinks’ covered under
Regulation 2.3.30 to ‘Carbonated Water- Based Flavoured
Drinks’ (Category 14.1.4.1 Of the Food Category System in
Appendix A).
o Only those drinks which are ‘water-based’ can fall within the
scope of Category 14.1.4.1. It is submitted that as noted by the
Hon’ble Authority for Advance Ruling themselves, the im-
pugned products qualify as fruit juice based drinks’ by virtue
of falling within the scope of Regulation 2.3.30 (‘Carbonated
Fruit Beverages or Fruit Drinks”). Thus, the Hon’ble Authori-
ty for Advance Ruling have contradicted their own conclu-
sion that the products are Carbonated Beverages with fruit
juice by way of also holding that the products qualify as Car-
bonated water - based flavoured drinks. It is also highlighted
that Hon’ble Authority for Advance Ruling has on one hand
recognised that the impugned products will not qualify as
‘Carbonated water” in terms of Regulation 2.10.6 while at the
same time has observed that the products can qualify as Car-
bonated water-based flavoured drinks under Category
14.1.4.1. These observations are in no doubt, in direct contra-
diction with one and another.
 Furthermore, the Hon’ble Authority for Advance Ruling without
giving due consideration to the General Explanatory Notes [i.e. in-
terpretation of entries appearing with triple dash ---], classified the
impugned products under CTH 2202 10 20/2202 10 90 as lemon-
ade/others, solely based on the entries appearing in the Customs
GST LAW TIMES  28th May 2020  121