Page 129 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : JVS FOODS PVT. LTD. 367
wrongly got reversal of ITC on the said account which is opposed
by the applicant by filing a requisite application. Neither the state-
ments nor the deposit was voluntary. The said fact needs to be
brought to the knowledge of the authority as all the records pertain-
ing to FRK are resumed by them and the same may be called from
them.
Discussion and findings
7. We find that the appellant vide its application filed before the Raja-
sthan Authority for Advance Ruling, had requested for Advance Ruling on the
following point :-
Whether the goods Fortified Rice Kernels (‘FRK’), manufactured and sold
by M/s. JVS Foods Pvt. Ltd. will be fall under Chapter-10, Tariff item 1006
as Rice and description of goods 1006 10 90 others (IGST NIL/5%, CGST
NIL/2.5%, SGST NIL/2.5%)?
8. In pursuance of the aforesaid application, the Rajasthan Authority
for Advance Ruling in its Ruling No. RAJ/AAR/2019-20/27, dated 28-11-2019,
has pronounced its Ruling as under :
‘Fortified Rice Kernels (FRK), manufactured and supplied by the applicant
is classifiable under HSN 1904 90 90 and attracts GST @ 18% (SGST 9% +
CGST 9%).’
9. The appellant is not satisfied with the above Ruling and has there-
fore, filed the present Appeal before this forum.
10. During the course of the personal hearing the appellant reiterated
the points as stated in Grounds of Appeal and also submitted additional submis-
sions.
11. We have carefully gone through the appeal papers filed by the ap-
pellant, the Ruling of the Rajasthan Authority for Advance Ruling, written as
well as oral submissions made by the authorized representative of the appellant
at the time of personal hearing held on 17-3-2020
12. As regards the first contention of the appellant that the decision
passed by the Ld. AAR is without jurisdiction as the Ld. AAR has no jurisdiction
on deciding the rate of duty on particulars goods, we find that the appellant has
not correctly understood the decision of the Ld. AAR. In fact, the AAR in its or-
der has given ruling over the classification of the goods manufactured by the ap-
pellant with an Indication of present duty rate structure.
13. It is further observed that the Appellant’s main contention is that
the Fortified Rice Kernels has the essential character of Natural Rice and classifi-
able under HSN 1006 as Rice. To arrive at any conclusion of the said claim of the
appellant, we find it imperative to go through the process of manufacturing of
FRK. We find that, first, the natural rice is converted to flour form, then, the pre-
mix of vitamin-mineral is added to it. Post mix, the prepared material is passed
through a machine which converts it back in to granule shape similar to rice,
which are known as Fortified Rice Kernel (FRK). The FRK is packed in a 25 Kg.
bag to be further supplied to various millers/suppliers with instruction “this
product should be first mixed (blended) with traditional rice in ratio of 1:100 and then
the mixed rice is cooked and consumed.”
GST LAW TIMES  16th July 2020  129