Page 125 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : RICH DAIRY PRODUCTS (INDIA) PVT. LTD. 571
The Lower Authority after considering the various submissions of the appellant
such as the manufacturing process, test reports of the products as to the contents
and nutritive value, legal interpretations, FSSAI regulations, Customs Tariff
Heading, applicable chapter notes of the Customs Tariff and the HSN Explanato-
ry notes, had held that the products -
“Richyaa Damer Lemon” and “Licta Lemon” are classifiable under CTH
2202 10 20; and
“Richyaa Damer Cola”, “Licta Cola”, “Richyaa Damer Jeera Soda”, “Lic-
ta Jeera Masala”, “Richyaa Damer Orange” and “Licta Orange” are clas-
sifiable as “Other” under CTH 2202 10 90.
We find that the Lower Authority while answering as above has -
(1) Considered the FSSAI Regulations 2.3.6-Thermally Processed Fruit
Juices; 2.3.30- Carbonated Fruit Beverages or Fruit Drinks and 14.1.2.1-
Fruit juices & 14.1.4.1-Carbonated water-based flavoured drinks of Ap-
pendix A to these Regulations where there is a food Category system
and concluded that fruit juices and carbonated beverages with fruit juice
are distinct products under these regulations and that the appellants prod-
ucts are covered under Para 3A of 2.3.30 of the Regulations and Category
14.1.4.1 in the food category system in Appendix A to these regulations as ‘Car-
bonated Beverages with fruit juice’.
(2) Considered the entries of the Customs Tariff Heading 2009 related
to ‘Fruit Juice’ and the HSN Explanatory notes and as in the instant case
water constitutes around 92% in all the products, this large quantity of water
results in diluted products and as per the Explanatory Notes gets classified un-
der CTH 2202 as ‘Beverages’ and are not ‘Fruit Juices’.
(3) Considered the tariff entries of CTH 2202 and the HSN Explanatory
Notes and applying to the products has held that these beverages are
classifiable under CTH ‘2202 10-Waters, including mineral waters and
aerated waters, containing added sugar or other sweetening matter or
flavoured’.
(4) examined the FSSAI Regulation 2.10.6-Beverages Non-Alcoholic-
Carbonated and Category 14.1.1- Waters of Appendix A of the Regula-
tions, for arriving at the eight digit level classification under CTH 2202
10 and concluded that the Beverages under this category (i.e. covered
under Regulation 2.10.6) are the ‘Aerated Waters’ covered under CTH
2202 10 10 while the appellants products which are covered under Para
3A of the Regulation 2.3.30 and Category 14.1.4.1 are either classifiable
under CTH 2202 10 20 or CTH 2202 10 90.
The Lower authority has found that the impugned products are neither ‘Fruit
Juice’ classifiable under CTH 2009 or ‘Aerated Waters’ Classifiable under CTH
2202 10 10 but Carbonated beverages with fruit juice classifiable under CTH 2202
10 20 or 2202 10 90.
7.1 The appellant accept the finding of the Lower Authority that -
(1) their products which are ‘Carbonated Beverage with Fruit Juice’ are
not classifiable as ‘Fruit Juice” under CTH 2009; and
(2) the products are classifiable under CTH 2202.
The appellant contends before us that their products do not fall under 2202 10 as
‘Waters/Waters flavoured with fruit juice but merits classification under 2202 99
GST LAW TIMES  28th May 2020  125