2022 (3) TMI 1148 - AAR - GST

Classification of goods - Tamarind Kernal Powder (TKP) - treated (modified) tamarind kernel powder - plain (unmodified) tamarind kernel powder - classifiable under Chapter 13 of the CTA or not - HELD THAT - TKP merits classification in the third group as a Thickener (modified/ un- modified) derived from vegetable products - TKP falls under third group other as it is neither Agar-agar nor a thickener derived from locust beans/ locust bean seeds/ guar seeds. Modified/ Un-modified TKP is classified at Tariff 1302 39 00.

Summary

Issues: Classification of Tamarind Kernel Powder (TKP) under Tariff Item No. 1302 39 00.

Analysis:
1. Classification Dispute: Colourtex argued that TKP, derived from tamarind kernel seeds, should be classified under Tariff Item No. 1302 39 00 as 'Others,' not under Tariff Item No. 1302 32 90, which refers to products derived from locust beans, locust bean seeds, or guar seeds.

2. Legal Framework: The Central Excise regime and CBIC Circular No. 1037/25/2016-CX clarified the classification of TKP under CETA, 1985. The classification under Chapter 13 of the CTA includes vegetable saps, extracts, pectic substances, and mucilages derived from vegetable products.

3. Judicial Interpretation: The Authority for Advance Ruling analyzed Tariff 1302, which is divided into three groups: vegetable saps and extracts, pectic substances, and mucilages and thickeners derived from vegetable products. TKP was found to be a thickener derived from vegetable products, falling under the third group.

4. Sub-Classification: Within the third group, TKP was determined not to be Agar-agar or a thickener derived from locust beans, locust bean seeds, or guar seeds. Hence, it was classified under the 'Other' category within the third group.

5. Ruling: The Authority concurred with Colourtex's argument and ruled that both modified and unmodified TKP should be classified under Tariff 1302 39 00. The ruling settled the dispute regarding the correct classification of TKP manufactured by Colourtex.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the legal framework, the judicial interpretation, and the final ruling delivered by the Authority for Advance Ruling in Gujarat.