Incnut Lifestyle Retail (P) Ltd, In re

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers 2022 TaxPub(GST) 1456 (AAR-Tel) : (2022) 108 ITPJ (G) 0386 IN THE AUTHORITY FOR ADVANCE RULING, TELANGANA SRI B. RAGHU KIRAN, IRS, AND SRI S.V. KASI VISWESWARA RAO, MEMBER Incnut Lifestyle Retail (P) Ltd., In re A.R.com/05/2021 TSAAR Order No. 46/2022 15 July, 2022 (Order under section 98(4) of the Central Goods and Services Tax Act, 2017 and under section 98(4) of the Tealangana Goods and Services Tax Act, 2017.) ORDEr M/s. Incnut Lifestyle Retail Private Limited, Office No.G-3, Ground Floor,, Modern Profound Tech Park, Kondapur, Serlingampally, Hyderabad, Rangareddy, Telangana 500084 (36AAECI8820M1Z6) has filed an application in FORM GST ARA-01 Act, 2017 read with Rule 104 of CGST/TGST Rules. Under section 97(1) of TGST 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000 for SGST and Rs. 5,000 for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. Brief facts of the case: The applicant M/s. IncNut Lifestyle Retail Private Limited is in the business of manufacturing hair oil, shampoos etc., some of which are cosmetics and others Ayurvedic medicaments. They have obtained AYUSH license for each of their product. They are desirous of ascertaining whether the products manufactured by them (52 in number) are cosmetics or medicaments. Hence this application. 5. Questions raised: Whether the products manufactured by him under the licences issued by AYUSH department of Government of Telangana and sold as Ayurvedic products fall under HSN No. 30.04 or under HSN 3304 of the GST Tariff? 6. Personal Hearing: The Authorized representatives Sri C.S. Srinivas, Senior Consultant and Sri Balasai Krishna J.Consultant attended the personal hearing held on 27-4-2022. The authorized representatives reiterated their averments in the application submitted and contended as follows: 1. That, the product sold by them is certificate issued by the Ayush Department, Government of Telangana and therefore that it is an Ayurvedic product and is eligible for concessional rate of tax of 12% under HSN 30049011 enumerated at Sl.No.63 of Schedule-II of Notification 1 of 2017. 2. That, they relying on a catena of case law regarding the same of which emphasis is placed on 2015 (323) ELT 209 (SC) wherein the Honble Supreme Court of India while deciding the case of Hindustan Ltd., has ruled that Vaseline is medicament. They also submitted a tribunal order in the case of Aswini Home Pharmacy wherein it was ruled that Arnica Hair Oil is a medicament. 7. Discussion & Findings: The applicant claims to be manufacturing Ayurvedic products under licenses issued by AYUSH Department of Government of Telangana. The applicant therefore is of the opinion that all the products manufactured by the applicant can be classified as Ayurvedic medicaments under chapter sub-heading 30049011 @12% under GST. In the statement of relevant facts annexed to the application, the applicant has categorized the products manufactured by him into (6) broad types of Ayurvedic products. These are: A. For treatment of Hair: (a) Tavas Non-Sticky Hair Fall Oil (b) Viruj Hair Fall Oil for Normal Oily Scalp (c) Shvedan Hair Fall Oil- Non-Frizz Oil- For Dry Scalp (d) Vapra Root Stimulating Hair Oil (e) Niryath Root Stimulating Hair Oil (f) Vanya Root Stimulating Hair Oil (g) Praya Root Stimulating Hair Oil (h) Jeevath Root Stimulating Hair Oil (i) Ahuta Root Stimulating Hair Oil B. For treatment of dandruff and other hair disorders: (a) Dhavath Hairfall Shampoo (men care) SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2022 TaxPub(GST) 1456 (AAR-Tel) : (2022) 108 ITPJ (G) 0386

IN THE AUTHORITY FOR ADVANCE RULING, TELANGANA

SRI B. RAGHU KIRAN, IRS, AND SRI S.V. KASI VISWESWARA RAO, MEMBER

Incnut Lifestyle Retail (P) Ltd., In re

A.R.com/05/2021 TSAAR Order No. 46/2022

15 July, 2022

(Order under section 98(4) of the Central Goods and Services Tax Act, 2017 and under section 98(4) of the Tealangana Goods and Services Tax Act, 2017.)

ORDEr

M/s. Incnut Lifestyle Retail Private Limited, Office No.G-3, Ground Floor,, Modern Profound Tech Park, Kondapur, Serlingampally, Hyderabad, Rangareddy, Telangana 500084 (36AAECI8820M1Z6) has filed an application in FORM GST ARA-01 Act, 2017 read with Rule 104 of CGST/TGST Rules. Under section 97(1) of TGST

2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act.

3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000 for SGST and Rs. 5,000 for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted.

4. Brief facts of the case:

The applicant M/s. IncNut Lifestyle Retail Private Limited is in the business of manufacturing hair oil, shampoos etc., some of which are cosmetics and others Ayurvedic medicaments. They have obtained AYUSH license for each of their product. They are desirous of ascertaining whether the products manufactured by them (52 in number) are cosmetics or medicaments. Hence this application.

5. Questions raised:

Whether the products manufactured by him under the licences issued by AYUSH department of Government of Telangana and sold as Ayurvedic products fall under HSN No. 30.04 or under HSN 3304 of the GST Tariff?

6. Personal Hearing:

The Authorized representatives Sri C.S. Srinivas, Senior Consultant and Sri Balasai Krishna J.Consultant attended the personal hearing held on 27-4-2022. The authorized representatives reiterated their averments in the application submitted and contended as follows:

1. That, the product sold by them is certificate issued by the Ayush Department, Government of Telangana and therefore that it is an Ayurvedic product and is eligible for concessional rate of tax of 12% under HSN 30049011 enumerated at Sl.No.63 of Schedule-II of Notification 1 of 2017.

2. That, they relying on a catena of case law regarding the same of which emphasis is placed on 2015 (323) ELT 209 (SC) wherein the Honble Supreme Court of India while deciding the case of Hindustan Ltd., has ruled that Vaseline is medicament. They also submitted a tribunal order in the case of Aswini Home Pharmacy wherein it was ruled that Arnica Hair Oil is a medicament.

7. Discussion & Findings:

The applicant claims to be manufacturing Ayurvedic products under licenses issued by AYUSH Department of Government of Telangana. The applicant therefore is of the opinion that all the products manufactured by the applicant can be classified as Ayurvedic medicaments under chapter sub-heading 30049011 @12% under GST.

In the statement of relevant facts annexed to the application, the applicant has categorized the products manufactured by him into (6) broad types of Ayurvedic products. These are:

A. For treatment of Hair:

(a) Tavas Non-Sticky Hair Fall Oil

(b) Viruj Hair Fall Oil for Normal Oily Scalp

(d) Vapra Root Stimulating Hair Oil

(e) Niryath Root Stimulating Hair Oil

(f) Vanya Root Stimulating Hair Oil

(g) Praya Root Stimulating Hair Oil

(h) Jeevath Root Stimulating Hair Oil

(i) Ahuta Root Stimulating Hair Oil

B. For treatment of dandruff and other hair disorders:

(a) Dhavath Hairfall Shampoo (men care)