The petitioner based his arguments on the Food Safety
and Standards Authority of India (FSSAI) regulations. He
argued that the drinks are not carbonated.
Kabalai relied on a Supreme Court ruling on the similar
product to say that his products are not carbonated but
are thermally processed with carbon dioxide (CO2) which
helps in preserving the fruit juice concentrate. As such
the products are ready to serve fruit beverages which
should attract 12 per cent rate, he argued.
The AAR, however, relied on the GST Council's decision
which kept these goods under the category--carbonated
beverage with fruit juice--and ruled that 28 per cent
GST along with 18 per cent cess will be levied on these
Sandeep Sehgal, partner-tax at AKM Global, said the AAR
has enunciated the legal principle that definitions in a
statute may have a different purpose and may not be
imported from one to another.
"In this case, the FSSAI classification cited by the
taxpayer was not in sync with the GST classifications,
hence the AAR refused to place reliance on that," he
Source:::BUSINESS STANDARD ,