Page 130 - GSTL_ 28th May 2020_Vol 36_Part 4

576 GST LAW TIMES [ Vol. 36
the requirement of fruit juice content in the Beverages to be termed as either
‘Carbonated Fruit Beverages or Fruit Drinks’ or ‘Carbonated Beverages with
Fruit Juice’, while the food category under ‘Appendix A’ provides the categorisa-
tion of water-based flavoured drinks based on ‘Carbonated’ or ‘Non-
Carbonated’. In the case at hand, it is an admitted fact that the Carbonated water
content in the impugned products is around 92.5% and the content of lime
juice/lime juice concentrate is 2.5% & Orange juice is 5% and the Beverages are
ready to drink beverages supplied in sealed bottles of various capacities after
being carbonated. The same is marketed as ‘Carbonated Beverage with Fruit
Juice’. Thus, the products have the fruit content required under [Para] 3A of
Regulation 2.3.30 and also satisfies the categorisation under 14.1.4.1. Therefore,
the products purported to be prepared from fruit juice, the content of which is
2.5%/5% in respect of lime/other fruit juices and carbonated water, sugar etc.
are ‘Carbonated Beverages with Fruit Juice’ of Para 2.3.30 and food category
14.1.4.1 of Appendix A of the Regulation. We also note that the appellant, while
have stated that the products do not fall under the food category of 14.1.4.1, has
not come forth with the applicable categorisation. We hold that there is no con-
tradiction in the findings of the Lower authority, in the categorisation of the
product under FSSAI.
8.4 The appellant has stated that the products which are not essentially
in the nature of waters, would not fall for classification under 2202 10 20/2202 10
90 and that the said view is 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)]. In the cited decision under Para 66, it is observed as under :
“66. It can however be urged that even when lemon or lime juice is added
to water as a flavouring agent, the product can still be called lemonade.
Though it has to be seen whether the product is essentially waters with
added flavour or whether lemon juice is the basis of the fruit drink, but the
answer also lies in the definition of “non-carbonated ready to serve fruit
beverages” under Regulation 2.3.10 and “Carbonated fruit beverages and
fruit drinks” under regulation 2.3.30. It would follow from these regulations
that even when lime juice is added but the fruit content of lime or lemon juice is not
less than 5%, the product would be classified as fruit juice based drinks but if the
lime or lemon juice content is less than 5%, then it would classify as lemonade.”
(emphasis supplied)
The Tribunal has concluded that those carbonated beverages wherein the content
of lime or lemon juice is less than 5% would classify as lemonade. In the case at
hand the content of lime juice/orange juice is 2.5%/5.0% only and therefore the
cited decision is not applicable to the case at hand.
9. The appellant has placed reliance on the decision of the Ld. Commis-
sioner (Appeals), Hyderabad in the case Trinity Beverages Pvt. Ltd. [42/19-20, dat-
ed 30-9-2019] and have claimed that their competitors in the Industry who are
manufacturing similar carbonated beverages are classifying their products under
CTH 2202 99 20 as fruit juice based drinks. It is seen that in the said case, the
Fruit juice content in the Beverages is around 7% and the Commissioner (Ap-
peals) following the CESTAT Larger Bench decision in the case of Brindavan Bev-
erages cited above has held that they are fruit-based and accordingly classified
under CTH 2202 99 20. The facts are not similar inasmuch as the percentage of
fruit content in the products at hand are 5% or less and as per the cited Larger
Bench decision, the same are not fruit juice based drinks.
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