2019 (12) TMI 1117 - AAR - GST

Classification of goods - pellets - classified under HSN 1103 20 00 under the First Schedule of the Customs Tariff Act, 1975 or otherwise? - HELD THAT - The Applicant is supplying mixes and dough for preparation of biscuits and other bakers wares, whether or not preparation of the final edible item involves further baking or frying. It is, therefore, classifiable under tariff item 1901 20 00.

Summary

Issues:
1. Admissibility of the Application
2. Classification of the non-edible intermediary product

Admissibility of the Application:
The Applicant, a manufacturer of various products including a non-edible intermediary product, sought a ruling on the classification of the said product under the GST Act. The Applicant confirmed that the issue was not pending in any proceedings under the GST Act, and the revenue officer did not object to the admissibility of the Application. Consequently, the Application was deemed admissible.

Classification of the non-edible intermediary product:
The Applicant described the manufacturing process of the product and its sale to confectionery manufacturers for further processing. The Applicant classified the product as 'pellets' under HSN 1103 but argued that it could also fall under mixes and dough category under HSN 1905. Reference was made to a ruling by AAR, Tamilnadu on a similar product. The Revenue officer contended that the product did not fall under HSN 1103 as it lacked a registered brand name. The Authority analyzed the product's characteristics and production process, concluding that it was a baked item requiring further processing to become edible. As the final product involved baking as a cooking method at an intermediate stage, it was classified under tariff item 1901 20 00.

Conclusion:
The Authority ruled that the Applicant's non-edible intermediary product, consisting of wheat flour, sugar, and water, cut into a specific shape and dried by heating, was classifiable under tariff item 1901 20 00. The ruling was deemed valid unless declared void under the provisions of the GST Act.