2019 (4) TMI 1603 - AAR - GST

Classification of goods - rate of GST - Ready to cook popcorn premix i.e. Popcorn Maize with edible oil and salt - HELD THAT - It is the kernel of maize which are used as sweet corn or popcorn. In the case of sweet corn, the kernels are generally soft and are consumed by steaming, boiling, etc. and consumed with or without butter, condiments, etc. However the popcorn variety of maize generally has hard kernels which swell up and burst open when heated. These hard kernels can be mixed with butter, salt, caramel etc which gives rise to flavoured popcorn - while maize is covered under 10059000, maize flour is covered under 1102 20 00. The product imported by the applicant in the subject case is nothing but ready to use Popcorn mixed with salt and oil and needs only to be Microwaved/heated, etc for direct consumption - the kernels of corn/maize are edible parts of a plant and the same are mixed with oil and salt in order to be used for making of popcorn. Thus, the product in question is covered under Chapter 2008 19 90 of the GST Tariff and attracts IGST @ 12% and CGST SGST @ 6 % each.

Summary

Issues: Classification of "Ready to cook popcorn premix" under the GST Tariff and determination of the correct HSN code and applicable GST rate.

Analysis:
1. Facts and Contention - As per the Applicant:
The applicant imports popcorn maize, which is mixed with edible oil and salt, packed in fixed-weight pouches, and sold to prepare instant popcorn. The applicant argues that this product falls under HSN 2008 as an edible part of the plant prepared with oil and salt.

2. Contention - As per the Concerned Officer:
The officer acknowledges the import of popcorn maize mixed with oil and salt, suggesting classification under HSN 2008. The officer also presents alternative chapter headings under which maize products may be classified, accompanied by applicable GST rates.

3. Observations:
The Authority notes that maize is a cereal plant with various uses, including for human consumption and animal feed. The applicant imports maize under the correct classification but modifies it by mixing with oil and salt for popcorn production. The Authority distinguishes between maize varieties and their uses, such as sweet corn and popcorn.

4. Analysis of Classification:
While maize falls under different chapter headings based on its form, the Authority agrees that the applicant's product is ready-to-eat popcorn mixed with salt and oil. Referring to Chapter 2008 of the GST Tariff, the product is considered an edible part of plants prepared with added ingredients, justifying classification under HSN 2008 19 90 with an applicable IGST rate of 12% and CGST & SGST at 6% each.

5. Conclusion:
After extensive deliberations, the Authority determines the correct HSN code for the "Ready to cook popcorn premix" as 2008 19 90, attracting GST at the specified rates. The order clarifies the classification and applicable GST for the product based on the provided details and legal provisions.

This detailed analysis of the judgment addresses the issues raised regarding the classification of the "Ready to cook popcorn premix" under the GST Tariff, emphasizing the specific arguments presented by the applicant and the concerned officer, along with the Authority's observations and final decision on the correct HSN code and applicable GST rates.