18% IGST Is Applicable On Nutrition/Dietary Supplements: CESTAT

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

The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant has declared their goods, namely nutrition and dietary supplements, under Tariff Item No. 21069099 and paid 18% IGST under Serial No. 453 or 23 of Schedule III of Notification No. 1/2017-Integrated Tax (Rate), dated June 28, 2017.

The issue raised was whether the appellant's goods, i.e., nutrition and dietary supplements classified under Tariff item 21069099, attract 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 claimed by the appellant, or whether the goods are covered under serial No. 9 of Schedule IV of the said notification, which provided for IGST at the rate of 28% as claimed by the department.

The assessee submitted that the entire case of the department is that the goods imported by the appellant for the purpose of IGST fall under Schedule IV Serial No. 9. The goods of the same chapter heading are partly covered under serial No. 453 and/or 23 of Schedule III, which attracts 18% IGST, and partly under serial No. 9 of Schedule IV of Notification No. 1/2017, Integrated Tax (Rate), dated June 28, 2007.

The assessee contended that the goods mentioned in serial No. 9 are not general but some specific items for the reason that the entry appeared therein reads as food preparation not elsewhere specified or included, i.e., protein concentrates, textured protein substances, etc. Only the goods described in entry No. 9 are covered under Schedule IV of the notification, and the goods other than those specified therein will not fall under serial No. 9, but the same are appropriately covered under serial No. 453 and/or 23 of Schedule 3 of the notification, which attracts 18% IGST. Therefore, the appellant's declaration under serial No. 453 and/or serial No. 23 is correct. Hence, the entire case of the department fails on this ground alone.

The department reiterated the finding of the impugned order. He submits that the goods of Tariff Item No. 2169099, which are not elsewhere specified or included, are covered under serial No. 9 of Schedule IV. Therefore, the correct IGST rate is 28%. Hence, the order is proper, which does not require any interference.

The tribunal held that the appellants have correctly declared their goods under Serial No. 453 and/or 23 of Schedule III of Notification No. 1/2017, Integrated Tax (Rate), which attracts 18% of IGST. Therefore, the order is not sustainable.

Counsel For Appellant: Pramod Kedia

Counsel For Respondent: Rajesh Nathan

Case Title: Bright Performance Nutrition Versus Commissioner Of Customs-Mundra

Case No.: Customs Appeal No. 10049 of 2022 - DB

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