Order date – 01 December 2022

Key Pointers –

• The Applicant, M/s Healthy Life Foodtech Pvt. Ltd. is engaged with manufacturing the product namely GLAZE GELS and markets it to Bakeries all across India.
• Glaze Gels also known by its various synonyms in trade namely, Geli, cold geli,Glaze etc.is made of various sugars, water, thickening agent, colours and flavours, the same ingredients may also used for making Sugar Boiled Confectionery(SBC).
• The process of manufacturing of their product “Glaze Gel” is also similar to process of Manufacture of SBC and hence the product Glaze Gel may classify as SBC under CHN 1704 sr.no. 32AA in schedule II.
• The issue involved here is whether the product Glaze Gels is classifiable under chapter heading number 1704, Sr. No. 32AA under Schedule II?
• The AAR observed that the impugned product is not a vitreous mass; rather it is a semi solid mass which takes the shape of the pail in which it is poured. 
• The AAR finds that while Sugar Boiled Confectionery are directly sold to end ultimate end users for consumption, whereas the impugned product are not consumed by the end consumers, rather their product is used by cake manufacturers as a filling between sponge layers of cakes. Hence it is held that the impugned product cannot be considered as a Sugar Boiled Confectionery and therefore sr.no. 32AA to Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 not applicable to the said product.
• Since the impugned product is Sugar Confectionery the said impugned product falls under Sr. No. 12 of Schedule III of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 attracting GST rate of 18%.
• It also finds that the impugned product is semi solid in nature and is not congealed and it is also seen that there is no usage of congealing agents like pectin, gelatin, or similar substances. Accordingly the impugned product cannot be considered as Jelly confectionery. Thus the impugned product is covered under Chapter Heading 170490 90 - Others