Order Date – 23 January 2023

Facts –

• The Appellant, M/s Prakash and Company are selling commission agents of Jaggery; that the jaggery is loosely wrapped and stitched in gunny bags or loosely wrapped in plastic covers for easy transport and to avoid unnecessary wastage in transportation, but not pre packed or labeled.
• The Applicant states that agriculturist manufacture the jaggery mainly with sugar cane juice by mixing necessary chemicals in minor portion; that the boiled sugar cane juice will be put in approximately 5kg, 10kg and 30kg pots and it will be in the form of lump (jaggery). 
• The applicant states that the jaggery prior to Notification No. 06/2022 Central Tax (Rate) dated 13-07-2022 was totally exempt from tax under Section 11(1) of the CGST Act bearing SI. No.94 having HSN Code 1701 or 1702.

Issue –

• Whether all types of jaggery are covered under the Notification No. 6/2022-Central Tax (Rate) dated 13-07-2022?

Order –

• The AAR held that the entry 91A of Notification No. 1/2017 Central Tax (Rate) dated: 28.06.2017 as amended vide Notification No.6/2022 dated 13-07-2022 says Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labeled is exigible to CGST at 2.5%. which means all types of jaggery which are pre- packaged and labeled is exigible to CGST at 2.5%.