Nimbooz is categorised as a fruit juice-based drink rather than lemonade, hence there is no GST Levied
The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) determined that Nimbooz was categorized as a fruit juice-based drink rather than lemonade, and so no GST was required.
M/s Varun Beverages Limited, the appellants, manufacture beverages such as ‘Nimbooz by 7 UP’ and ‘Nimbus Masala Soda by 7 UP’ and classify them under Chapter 22029020 (fruit pulp or fruit juice based drinks) of the First Schedule to the Central Excise Tariff Act, 1985. (CETA). Revenue challenged the classification opening, claiming that these beverages are classed under Chapter Heading 22021020, not CTH 22029020, as the appellant claimed, and hence subject to excise duty as Lemonade. The time span is from February 2009 to December 2013, and it is covered by two show-cause notices.
Similar issues had previously arisen in appellant’s own case and others before this Tribunal, and via Final Order dated 15.07.2019, this Tribunal referred the order to the Larger Bench decision of this Tribunal dated 30.04.2019, – 2019 (29) GSTL 418 (L.B.) in which it was held that the goods under dispute are classifiable under tariff item No. 22029020, which is for the category of fruit pulp or fruit juice-based drinks.
While affirming the verdict of the bigger bench, the coram of Judicial Member Anil Choudhary and Technical Member P. Anjani Kumar held that the products in question are classifiable under tariff item No. 22029020. According to the law, the appellant is entitled to subsequent advantages.
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