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2021 (8) TMI 839 - AAR - GSTClassification of goods - rate of tax - Gota Mix Flour - Dakor Gota Mix Flour - Methi Gota Mix Flour - Khaman Mix Flour - Dhokla Mix Flour - Idli Mix Flour - Rava Idli Mix Flour - Dosa Mix Flour - Upma Mix Flour - Dahiwada Mix Flour - Dalwada Mix Flour - Menduvada Mix Flour - Handvo Mix Flour - Khichu Mix Flour - HELD THAT - The subject 14 products of Mix Flour/ Instant Mix Flour are preparations for use, after processing, such as cooking, carrying out the detailed procedure for cooking as mentioned on the packets of all the said products, then ready for human consumption. The applicant submitted that the products are not in ready to consume form but needs to be subjected to further processing and cooking for conversion into ready to eat food . Chapter Heading 2106 is not confined to processed or semi processed food, cooked or semi cooked food, preserved food and ready to eat food. In fact, any product which is a food preparation and which is not elsewhere specified or included in the CTA, 1975, gets covered under HSN 2106. On the packets of all the above products-Category Mix Flour has been printed on the packets and the detailed procedure recipe is printed on back side of the packets. The stand is in compliance and consonance with the case law COMMISSIONER OF C. EX., AHMEDABAD VERSUS RM FOODS 2009 (8) TMI 463 - CESTAT, AHMEDABAD wherein Hon ble CESTAT held that the products (Gota Mix, Khaman Mix, Dal Wada Mix etc.) were entitled to benefit of Sl. No. 28 of Notification No. 3/2006-Central Excise. Admissibility of Sl. No. 28 of Notification No. 3/2006-Central Excise to the Instant Food Mixes (Gota Mix, Khaman Mix, Dal Wada Mix etc.), the fact that in the said Sl. No. 28, the description of goods mentioned against Chapter Heading 2106 included Instant Food Mixes such as Pongal mix, Vadai mix, Pacoda mix, Payasam mix, Gulab Jamun mix, Rava Dosa mix, Idli mix, Dosa mix, Murruku mix, and Kesari mix, supports our view that various Instant Food Mixes (Instant Mix / Ready Mix Flour) being supplied by the applicant are classifiable under HSN 2106. The Central excise Tariff Heading 2106 was based on HSN and applies to subject matter. Food preparations not elsewhere specified or included falling under Chapter Heading 2106 are covered under the aforesaid Entry at Sr. No. 23 of Schedule- III of Notification No. 1/2017-Central Tax, as amended, attracting Goods and Services Tax @ 18%, though some of the specific products of Chapter Heading 2106 excluded from this entry are covered under different entries of Schedule-I or Schedule-II, attracting Goods and Services Tax @ 5% or 12%. None of the aforesaid 14 products of various Instant Mix / Ready Mix Flour being supplied by the applicant are the products which have been excluded from the entry at aforesaid Sr. No. 23 of Schedule III or which have been specifically included in any other entry of other Schedule of Notification No.1/2017-Central Tax(Rate), as amended or in any of the entries of Notification No. 2/2017-Central Tax(Rate). The Instant Mix Flours/Mix Flours of Gota, Dakor Gota, Methi Gota, Khaman, Dhokla, Idli, RavaIdli, Dosa, Upma, Dahiwada, Dalwada, Menduvada, Handvo and Khichu are classifiable under HSN. 2106 90(Others) attracting 18% GST.
Issues Involved:
1. Classification of various instant mix flours under the appropriate Harmonized System of Nomenclature (HSN) code. 2. Determination of the applicable Goods and Services Tax (GST) rate for these products. Detailed Analysis: 1. Classification of Instant Mix Flours: The primary issue revolves around the classification of various instant mix flours manufactured by the applicant. The applicant argued that these products should be classified under HSN 1102 or alternatively under HSN 1106. - HSN 1102: This heading covers "Cereal Flours other than that of wheat or meslin." The applicant contended that their products, being primarily flours with added spices, should fall under this category. However, the ruling authority noted that the Explanatory Notes to HSN 1102 allow for the addition of very small quantities of certain substances like mineral phosphates and vitamins, but the addition of spices and other ingredients in significant proportions (ranging from 5% to 37%) as in the applicant's products, intended for use as food preparations, excludes them from this heading. - HSN 1106: This heading covers "Flour, Meal and Powder of the dried leguminous vegetables of Heading 0713, of sago or of roots or tubers of Heading 0714 or of the products of Chapter 8." The applicant suggested that their products could also be classified under this heading. However, the ruling authority found that the presence of spices and other ingredients in significant proportions, which are not mentioned in the Chapter Heading 1106 or the relevant Explanatory Notes of HSN, disqualifies the products from being classified under this heading. - HSN 2106: Ultimately, the ruling authority classified the products under HSN 2106, which covers "Food preparations not elsewhere specified or included." The authority reasoned that the products are preparations for use after processing, such as cooking, and are not specified under any other heading. The products are marketed as "Instant Mix Flour" and require further processing before consumption, aligning them with the characteristics of goods covered under HSN 2106. 2. Determination of GST Rate: Having classified the products under HSN 2106, the next issue was determining the applicable GST rate. - The ruling authority referred to Notification No. 1/2017-Central Tax (Rate), which specifies the GST rates for various goods. Under this notification, "Food preparations not elsewhere specified or included" falling under Chapter Heading 2106 are subject to an 18% GST rate (9% CGST + 9% SGST), as per entry at Sr. No. 23 of Schedule III. - The authority clarified that the applicant's products do not fall under any specific exclusions listed in the notification that would attract lower GST rates. Therefore, the applicable GST rate for the applicant's instant mix flours is 18%. Conclusion: The ruling concluded that the various instant mix flours manufactured by the applicant, including Gota, Dakor Gota, Methi Gota, Khaman, Dhokla, Idli, Rava Idli, Dosa, Upma, Dahiwada, Dalwada, Menduvada, Handvo, and Khichu, are classifiable under HSN 2106 90 (Others) and attract an 18% GST rate. The authority dismissed the applicability of previous VAT determinations and other case laws cited by the applicant, emphasizing the need to follow GST classification based on the Harmonized System of Nomenclature (HSN) and the associated rules.
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