Order Date: 21 February 2023

Facts – 

• The Applicant M/s. SATS Food Solutions India Pvt. Ltd., manufactures various frozen ready-to-eat, ready-to-cook, processed, and semi-processed food products and supplies in B2B to companies that will then further sell to its end consumers.
• The applicant does not supply directly to the end consumers, their activity is not a ‘restaurant service’ for charging lower rate of tax at 5% with no ITC. 
• The applicant is of the view that the products supplied in a package bear the company’s brand name, hence it would attract a higher rate of tax at 12% or at 18%.

Issue – 

• Which rate of tax is applicable?

Orders – 

• The authorities observed that the applicant is into the manufacture of ready-to-eat food, which are processed food products that are pre-cleaned, pre-cooked, and packed but not ready for consumption without thawing, heating, and repacking.
• The Court stated that ready-to-eat food products, either directly or indirectly or after processing, for human consumption are covered under tariff heading 2106, hence it attracts GST at 18%.