Shridhar Deshpande (Herbal India Corporation) ., In re
Date: April 22, 2025
Subject Matter
AAR application rejected as the classification issue is currently pending before the CESTAT, Bengaluru
Summary
The applicant, M/s. Shridhar Deshpande of M/s. Heabal India Incorporation, sought an advance ruling regarding the classification and GST rate applicable to their product, "Heabal Tea Cigarette," designed to help individuals quit smoking. They filed their application under the appropriate sections of both the CGST and KGST Acts, along with the required fees. - During a personal hearing, the applicant's representatives acknowledged that the classification issue of their product is currently pending before the Hon’ble CESTAT, Bengaluru. - As per the stipulation in Proviso (i) to Section 98(2) of the CGST Act, the application for advance ruling cannot be admitted if the question has already been decided or is pending in other proceedings. - Consequently, since the classification issue is already pending before the CESTAT, the ruling authority rejected the application, citing the legal provision stated above.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING KARNATAKA
M/s. Shridhar Deshpande, Prop. M/s. Heabal India Incorporation (herein after referred to as ‘Applicant), #1, 1st Floor, J.K. Plaza, Kathriguppe Main Road, Vidyapeetha Circle, Bengaluru-560 028, Karnataka, having GSTIN 29ASBPS2586C4ZH, have filed an application for Advance Ruling under Section 97 of “CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-Ol discharging the fee of Rs.5,000/- each under the CGST Act, KGST Act.
2. The applicant submitted that they are a subsidiary of M/s Heabal Tech, headquartered in South Korea; introduced its product “Heabal Tea Cigarette” to the Indian market, which is specifically designed to assist individuals to quit smoking. In view of this, the applicant sought advance ruling in respect of the classification and the rate of GST, applicable on their product “Heabal Tea Cigarette”.
3. An opportunity of personal hearing was provided on 08.04.2025 through video conference and Sri. Shridhar Deshponde, MD, Heabal India Incorporation along with Ms. Shalini Basetty, Research Scientist appeared, reiterated the facts narrated in their application and admitted that the impugned issue of classification of their product is pending before Hon’ble CESTAT, Bengaluru.
4. Proviso (i) to Section 98(2) of the CGST Act 2017 stipulates that “the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any provisions of this Act”. In the instant case it is an admitted fact that the issue of classification of the product Heabal Tea Cigarette is pending before the Hon’ble CESTAT, Bengaluru and hence the instant application is liable for rejection.
5. In view of the foregoing, we pass the following
RULING
The application is rejected as an appeal is pending before the Hon’ble CESTAT, Bengaluru in terms of Proviso(i) to Section 98(2) of the CGST Act 2017.