Ahmedabad CESTAT: 18% IGST Applies To Nutrition And Dietary Supplements

Ahmedabad CESTAT: 18% IGST Applies To Nutrition And Dietary Supplements

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has noted that an 18% Integrated Goods and Service Tax (IGST) is levied on nutrition and dietary supplements.

The panel, consisting of Ramesh Nair (Judicial Member) and Raju (Technical Member), has remarked that the appellant has classified their products, specifically nutrition and dietary supplements, under Tariff Item No. 21069099. They have accordingly remitted an 18% IGST under Serial No. 453 or 23 of Schedule III of Notification No. 1/2017-Integrated Tax (Rate), dated June 28, 2017.

The question raised pertained to whether the goods of the appellant, namely nutrition and dietary supplements categorized under Tariff item 21069099, are subject to IGST at the rate of 18% under serial No. 453 and/or 23 of Schedule III of Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017, as asserted by the appellant, or if the goods fall under serial No. 9 of Schedule IV of the aforementioned notification, which mandates IGST at the rate of 28%, as contended by the department.

The assessee argued that the department's contention revolves around categorizing the goods imported by the appellant under Schedule IV Serial No. 9 for IGST purposes. However, the goods within the same chapter heading are partially classified under serial No. 453 and/or 23 of Schedule III, attracting 18% IGST, and partially under serial No. 9 of Schedule IV of Notification No. 1/2017, Integrated Tax (Rate), dated June 28, 2007.

The assessee argued that the items listed in serial No. 9 are specific and not general goods. They pointed out that the entry in serial No. 9 pertains to "food preparation not elsewhere specified or included," such as protein concentrates and textured protein substances. According to the assessee, only goods explicitly described in entry No. 9 fall under Schedule IV of the notification. Goods not specified in this entry should be classified under serial No. 453 and/or serial No. 23 of Schedule 3 of the notification, attracting 18% IGST. Therefore, the appellant's declaration under serial No. 453 and/or serial No. 23 is accurate, rendering the department's case invalid.

The department reaffirmed the conclusions drawn in the challenged order. They argued that goods falling under Tariff Item No. 2169099, which are not specifically categorized elsewhere, are encompassed by serial No. 9 of Schedule IV. Consequently, the appropriate IGST rate applicable is 28%. Therefore, they asserted that the order is correct and does not warrant any intervention.

The tribunal determined that the appellants accurately classified their goods under Serial No. 453 and/or 23 of Schedule III of Notification No. 1/2017, Integrated Tax (Rate), which mandates an 18% IGST rate. Consequently, the tribunal found the order to be untenable.