Case Details: Seetharamnjaneya Dal and Fried Gram Mill, In re - [2023] 149 taxmann.com 335 (AAR-Andhra Pradesh)
Judiciary and Counsel Details
- K. Ravi Sankar & R.V. Pradhamesh Bhanu, Member
- Ramaraju Srinivasa Rao, Adv. for the Appellant.
Facts of the Case
The applicant is engaged in the milling business of pulses and dalls. The applicant supplied red gram dall to the Andhra Pradesh State Civil Supplies Corporation Limited (hereafter referred to as ‘Corporation’) which is a state undertaking engaged in supplying essential commodities to the fair price shops. As per the agreement between the applicant and the corporation, the applicant has to supply dall as per the guidelines issued by the corporation regarding packaging and printing of labels on the packing.
The applicant has applied for Advance Ruling before the Andhra Pradesh AAR to know the applicability of the Notification No. 06/2022-Central Tax (Rate), dated 18-07-2022 on the given transaction and whether such supply of red gram dall to the corporation attracts GST.
AAR Held
The AAR referred to Notification No. 06/2022-Central Tax (Rate) wherein GST is applicable on the supply of specified commodities (which are otherwise attracting Nil rate), when pre-packaged and labelled as per the provisions of the Legal Metrology Act, 2009.
The AAR provided that by reading the definition of ‘Pre-packaged commodity’ as per the Legal Metrology Act, 2009, there are three conditions that need to be satisfied to be covered within its meaning:
- Without the purchaser being present
- Commodity is placed in a package
- Product contained shall have a pre-determine quantity
The AAR observed that any packaging made as per the specific request of the specific buyer is not ‘pre-packaged’ but is only packaged.
In the given case, it is clearly evident from the package that the corporation has made very clear instruction as to colour, theme, transparency and details to be printed on package. Thus, commodity is packed for retail sale for any buyer who may purchase at a later point, but it is packaged for a specific buyer. Thus, the first condition of ‘Pre-packaged commodity’ is not satisfied. The AAR held that the given goods are not liable to GST.
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