“RAJASTHAN AAAR/; BRANDED FROZEN CHICKEN IN LDPE BAGS SUPPLIED TO ARMY IS PACKAGED IN UNIT CONTAINERS- NOT EXEMPT UNDER GST NOTIFICATION NO. 2/2017- CT(R)”

RAJASTHAN AAAR/; BRANDED FROZEN CHICKEN IN LDPE BAGS SUPPLIED TO ARMY IS PACKAGED IN UNIT CONTAINERS- NOT EXEMPT UNDER GST NOTIFICATION NO. 2/2017- CT(R)

RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING

Gitwako Farms India Private Limited

(GST AAAR RAJASTHAN)

ORDER NO. RAJ/AAAR/4/2019-20
DATED: 2nd August 2019

IMPORTANT PARAGRAPHS

Para no. 2. The present appeal has been filed under Section 100 of the Central GST Act, 2017 (hereinafter also referred to as ‘CGST Act’) read with Section 100 of the Rajasthan GST Act, 2017 (hereinafter also referred to as ‘RGST Act’) by Gitwako Farms (India) Private Limited, Alwar, Rajasthan (hereinafter also referred to as the Appellant’) against the Advance Ruling No. RAJ/AAR/2019-20/4, dated 22.04.2019.

Para no. 9. We have carefully gone through the Appeal papers filed by the Appellant, the Ruling of the AAR, Rajasthan, written as well as oral submissions made by the authorized representative(s) of the Appellant, at the time of personal hearing held on 23.07.2019. We find that the appellant vide its Application dated 01.02.2019 filed before AAR, Rajasthan, had requested for Advance Ruling as to –

Question-1: What is the classification when Frozen chicken is sold in packaged form and its HSN code?

Question -2: Whether frozen chicken as sold by the company is exempt under Entry No.9 of the Notification No.2/2017-CT (R), dated 28.06.2017?

Para no. 10. In pursuance of the aforesaid Application dated 01.02.2019, the Authority for Advance Ruling, Rajasthan (AAR, Rajasthan) in its Ruling No. RAJ/AAR/2019-20/04, dated 22.04.2019 has pronounced its Ruling as under:

(a) The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 02071200.

(b) The Frozen Chicken supplied by the applicant is not exempted under Entry No.9 of the Notification No.2/2017-CT (Rate), dated 28.06.2017 (as amended from time to time).

Para no. 14. The Authority for Advance Ruling, Rajasthan (AAR, Rajasthan) in its Ruling No. RAJ/AAR/2019-20/04, dated 22.04.2019 has pronounced that Frozen Chicken is classifiable under HSN Code 02071200. The appellant has not raised any objection in the instant appeal against the above ruling regarding classification of Frozen Chicken under HSN Code 02071200.

Para no. 17. From a plain reading of Notification No. 01/2017-(CT) Rate, dated 28.06.2017 (as amended from time to time), we find that all goods of heading 0207 [other than fresh or chilled] put up in unit container and bearing a registered brand name, are leviable to GST. In this background, the following three conditions are crucial for determining the leviability of GST on the goods falling under heading 0207-

(i)Goods should not be merely fresh or chilled.

(ii)Goods should bear a registered brand name.

(iii) Goods should be put up in unit containers.

ORDER

Para no. 26. We reject the appeal filed by the appellant and uphold the advance ruling dated 22.04.2019, rendered by the Rajasthan Authority for Advance Ruling, Goods and Services Tax. Jaipur, holding that supply of Branded Frozen Chicken packed by the appellant in individual LDPE bag in pre-determined quantities (one in number) and supplied to the Indian Army and Paramilitary forces in the HDPE bags as supply in Unit Container and not exempted under entry No.9 pf the Notification No.2/2017-CT(Rate), dated 28.06.2017 (as amended).