We apprised you regarding investigations being undertaken by DGGI classifying Fruit juice-based drinks under Tariff Item 2202 10 20 or 2202 10 90 and levying GST of 40 percent (including Compensation Cess) and rejecting taxpayers’ classification under Tariff Item 2202 99 20.

Recently, this came up before CESTAT in the case of Commissioner of Customs v. Anutham Exim Private Limited, 2021 (2) TMI 822 – CESTAT Kolkata wherein the revenue contended that imported products like Big Cola, Big Orange, Big Lemon etc. (containing less than 5 / 2.5 percent of fruit juice) dominated by carbonated water and sugar, are classifiable under Tariff Item 2202 99 20 – Aerated waters: Lemonade / Others. CESTAT held that products in question are classifiable under Tariff Item 2202 99 20 as Fruit juice-based drinks.  

On this issue, we are pleased to share short video by Anshika Agarwal, Senior Associate at NITYA Tax Associates. In this video, Anshika has discussed this judgment and NITYA’s take on the same. The video is available at https://youtu.be/jczSo2uBhOU