Product Marketed Under Brand Name "Ber Berry" Is Classifiable Under GST Tariff Heading 2008: AAR

The two-member panel of Virendra Kumar Jain and Manoj Kumar Choubey observed that chapter 8 exclusively covers fresh fruit or fruit cooked by steaming or boiling in water. However, the applicant's procedure exceeds the process covered by chapter 0811. In the applicant's case, the product is soaked in boiling water before being transported to a steamed jacketed tank where it is cooked with steam and additional components such as sugar, salt, preservatives, and spices are added. The process of manufacture of the product of the applicant is not simple to cover in chapter 0811. The applicant's procedure involves the production of fruit that incorporates preservatives as well as additional additives such as sugar, salt, and spices. The tariff classifies it as chapter heading number 2008.

The chapter heading number 2008 includes fruit, nuts, and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included.

The chapter heading number 0811 includes fruits and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter.

The applicant is engaged in the manufacture of an edible product under the brand name "Ber Berry". It contains Jujube fruit, sugar, salt, permitted preservatives, and mixed spices.

The product consists of Jujube fruit, commonly known as "Berphal" in India. It is a fruit itself which is packed in crushed or softened form and mixed with sugar and salt for flavouring. The fresh jujube fruits are sorted, cleaned, and then soaked in hot water. The soaked fruit is then transferred to a centrifugal machine and then to a steam jacketed tank where it is cooked with steam. At this stage, the other ingredients, i.e., sugar, salt, preservatives, and some spices, are added for flavouring. Once the fruit is cooked, it is transferred to small containers of 20 kg each for cooling, and then it is packed into small sachets of around 11 grams each.

The product is packed into small sachets of around 11 grams each. 60 sachets are packed into a larger pack for sale to the distributors and retailers. The end consumer would buy the small sachets and consume them after opening them.

The product is in the form of the original jujube fruit itself, which also contains the seeds and retains the essential taste and character of the fruit. It is cooked with the help of steam and mixed with sugar as a flavouring substance only.

The applicant contended that the product is prepared by cooking it by steaming which is the exact same procedure as specified under the heading. Therefore, it would be unquestionably classified under Chapter 8 and therefore not under Chapter 20.

The applicant submitted that the product should not be classified under heading 2008 as the tariff heading only covers fruit preparations prepared by processes not specified or included elsewhere.

The applicant has relied on the CESTAT's decision in the case of Premier Mushroom Farms versus the Commissioner of C. Ex. It was held that the note to Chapter 20 excludes provisionally preserved vegetables from that chapter, which is for prepared vegetables. Technical opinions obtained by both sides confirm the provisionally preserved nature of the vegetable. HSN note to Chapter 7 includes both cooked and uncooked vegetables under that heading. Thus, the entire material on record supports classification under Chapter 7. Therefore, the Tribunal opined that the correct classification of button mushrooms in brine is under Chapter 7.

The AAR observed that chapter 8 covers either fresh fruit or fruit cooked by steaming or boiling in water only, whereas the process of the applicant is more than the process covered under chapter 0811. In the applicant's case, after the product is soaked in hot water, it is transferred to a steamed jacketed tank where it is cooked with steam, and at this stage, other ingredients, i.e. sugar, salt, preservatives, and some spices are added. The process of manufacture of the product of the applicant is not simple to cover in chapter 0811. The process of the applicant is the preparation of fruit, which contains preservatives and other ingredients, i.e., sugar, salt, and some spices also. The product is not covered under chapter 0811 and is classified under the heading number 2008 of the tariff.

Applicant's Name: M/s Italian Edibles Pvt. Ltd

Dated: 03.03.2022

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