2021 (8) TMI 491 - AAR - GST

Classification of goods - Jack fruit chips and Banana chips (salted and masala varieties) made out of raw as well as ripe banana and sold without BRAND NAME - covered by HSN code 2106.90.99 and taxable under Entry 101A of schedule of Central Tax (Rate) Notification No.1 of 2017 or otherwise? - Sharkara Varatty sold without BRAND NAME - classifiable as SWEET MEATS and covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule of Central Tax (Rate) Notification 1/2017 - roasted and salted / salted / roasted preparations such as of Ground nuts, Cashew nut and other seeds are NAMKEENS when sold without a brand name - classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1/2017 or otherwise? - salted and masala chips of Potato and Tapioca are classifiable as Namkeens when sold without a brand name - classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017? HELD THAT - Any vegetable, fruit, nut or edible parts of plant which is prepared or preserved by any other process than these, are liable to be classified under Chapter 20. Chapter Heading 2008 of the Customs Tariff covers all roasted and fried vegetable products - Frying and roasting are two popular cooking methods that both use high temperature. It is not necessary that both the conditions are to be cumulatively satisfied for classifying a product under the category of roasted and fried products. Since according to chapter notes and description of tariff items, the products are classifiable under specific headings of Chapter 20 and hence they cannot be classified under Heading 2106 as food preparations not elsewhere specified or included. Applying the principles of interpretation in Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 the Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapoica Chips and Potato Chips (Whether salted/ masala or otherwise) are classifiable under Tariff Heading 2008 19 40 of the Customs Tariff Act, 1975. Regarding classification of roasted /salted / roasted and salted Cashew nuts, Ground nuts and other nuts there are specific headings under Chapter 20 that covers the products. Accordingly, roasted /salted / roasted and salted Cashew nuts are classifiable under Tariff Heading 2008 19 10 and other roasted /salted / roasted and salted nuts and seeds are classifiable under 2008 19 20 of the Customs Tariff Act, 1975. Thus, all the products that fall under Chapter Heading 2008 of the Customs Tariff Act, 1975 attract GST at the rate of 12%.

Issues Involved:
1. Classification and tax rate of Jackfruit chips and Banana chips.
2. Classification and tax rate of Sharkara Varatty.
3. Classification and tax rate of roasted and salted / salted / roasted preparations of Ground nuts, Cashew nut, and other seeds.
4. Classification and tax rate of salted and masala chips of Potato and Tapioca.

Issue-wise Analysis:

1. Classification and Tax Rate of Jackfruit Chips and Banana Chips:
The applicant contended that Jackfruit Chips and Banana Chips, sold without a brand name, should be classified as "Namkeens" under HSN code 2106.90.99 and taxed at 5% GST. The Authority, however, examined the products' preparation methods and concluded that these chips fall under Customs Tariff Heading 2008.19.40, which covers roasted and fried vegetable products. Consequently, these chips are not classified as "Namkeens" but as products under Chapter 20, attracting a GST rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

2. Classification and Tax Rate of Sharkara Varatty:
The applicant argued that Sharkara Varatty, sold without a brand name, should be classified as "Sweet Meats" under HSN code 2106.90.99 and taxed at 5% GST. The Authority reviewed the product's characteristics and preparation process, determining that Sharkara Varatty falls under Customs Tariff Heading 2008.19.40. This classification aligns with products prepared or preserved by methods other than those specified in Chapters 7, 8, or 11. Therefore, Sharkara Varatty is subject to a GST rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

3. Classification and Tax Rate of Roasted and Salted / Salted / Roasted Preparations of Ground Nuts, Cashew Nut, and Other Seeds:
The applicant claimed that these products should be classified as "Namkeens" under HSN 2106.90.99 and taxed at 5% GST. The Authority, however, found that roasted and salted / salted / roasted preparations of Cashew nuts fall under Customs Tariff Heading 2008.19.10, and similar preparations of Ground nuts and other seeds fall under Customs Tariff Heading 2008.19.20. These products are not classified as "Namkeens" but as items under Chapter 20, attracting a GST rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

4. Classification and Tax Rate of Salted and Masala Chips of Potato and Tapioca:
The applicant contended that these chips should be classified as "Namkeens" under HSN 2106.90.99 and taxed at 5% GST. The Authority examined the preparation methods and concluded that these chips fall under Customs Tariff Heading 2008.19.40, which covers roasted and fried vegetable products. Consequently, these chips are not classified as "Namkeens" but as products under Chapter 20, attracting a GST rate of 12% [6% CGST + 6% SGST] as per Entry 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.

Rulings:
1. Jackfruit chips and Banana chips (salted and masala varieties) made out of raw as well as ripe banana and sold without a brand name are classifiable under Customs Tariff Heading 2008.19.40 and liable to GST at the rate of 12% [6% CGST + 6% SGST].
2. Sharkara Varatty sold without a brand name is classifiable under Customs Tariff Heading 2008.19.40 and liable to GST at the rate of 12% [6% CGST + 6% SGST].
3. Roasted and salted / salted / roasted preparations of Ground nuts, Cashew nut, and other seeds sold without a brand name are classifiable under Customs Tariff Heading 2008.19.10 (Cashew nuts) and 2008.19.20 (Ground nuts and other seeds), and liable to GST at the rate of 12% [6% CGST + 6% SGST].
4. Salted and masala chips of Potato and Tapioca sold without a brand name are classifiable under Customs Tariff Heading 2008.19.40 and liable to GST at the rate of 12% [6% CGST + 6% SGST].

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