Modern Food Enterprises Private Limited vs. Union Of INDIA
Held
The High Court held that the petitioner's products are akin to those under HSN 1905, not HSN 2106, applying Rule 4 of the General Rules for Interpretation. It ruled that the products are liable to be taxed at 5% GST (2.5% CGST + 2.5% SGST) as per Entry 99A of the Rate Notifications, rejecting the claim for full exemption.
Facts
The petitioner, a manufacturer of Classic Malabar Parota and Whole Wheat Malabar Parota, challenged an Advance Ruling and Appellate Advance Ruling that classified their products under HSN 2106, attracting 18% GST. The petitioner contended their products should be classified under HSN 1905 as 'bread' or similar, attracting 5% GST or exemption.
Key Issues
The key legal issues were the correct classification of Classic Malabar Parota and Whole Wheat Malabar Parota under the Customs Tariff Act, 1975 (for GST purposes), and the applicable GST rate (18%, 5%, or exempted).
Sections Cited
Section 97, Notification No. 1/2017-Central Tax (Rate), Notification No. 2/2017-Central Tax (Rate), Rule 4 of GRI
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 2ND DAY OF APRIL 2024 / 13TH CHAITHRA, 1946 WP(C) NO. 13935 OF 2021 PETITIONER/S: MODERN FOOD ENTERPRISES PRIVATE LIMITED, EDAPPALLY, NATIONAL HIGHWAY NO.47, KOCHI, KERALA - 682024, REPRESENTED THROUGH ITS ACCOUNTS MANAGER, MR. SRIJITH M. S. BY ADVS. M.GOPIKRISHNAN NAMBIAR K.JOHN MATHAI JOSON MANAVALAN KURYAN THOMAS PAULOSE C. ABRAHAM RAJA KANNAN R.CHETHAN KRISHNA S.PARVATHI RESPONDENT/S: 1 UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, (DEPARTMENT OF REVENUE), NO.137, NORTH BLOCK, NEW DELHI - 110001. 2 STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 3 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS REPRESENTED BY ITS CHAIRMAN, NORTH BLOCK, NEW DELHI - 110 001. 4 KERALA STATE GOODS AND SERVICES TAX DEPARTMENT 9TH FLOOR, TAX TOWER, KILLIPPALAM, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 5 THE APPELLATE AUTHORITY FOR ADVANCE RULINGS 9TH FLOOR, TAX TOWER, KILLIPPALAM, KARAMANA P. O., THIRUVANANTHAPURAM - 695 002. 6 THE KERALA AUTHORITY FOR ADVANCE RULINGS GOODS
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