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TMI Blog2019 (3) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... produced during the hearing, that the items are indeed edible only after frying in oil which is not done by the Applicant but those who purchase it. Whether the product in question is Papad falling under Ch. 1905 or a namkeen falling under Ch. 2106? - Held that:- Chapter 21 only covers edible preparations and Namkeens which are ready to eat are covered under the same. In the instant case, Maida vadam/papads are made of Maida, Sugar and Vanaspathi , Edible Salt, preservatives and dried in oven. They become edible only after frying in oil which is done by the ultimate consumer and the Applicant only supplies the dried/ semi - cooked version of it. Hence, they are not covered under Chapter 21. Papad is specifically specified under 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax Act. M/s. Subramani Sumathi doing business at No.4, Kappalpolu Street, Old Washermenpet, Chennai - 600 021. (Hereinafter called the Applicant) is an Unregistered person under the GST Act 2017. They have filed an Application seeking Advance Ruling under Section 97 of CGST Act, 2017, TNGST Act, 2017 and IGST Act, 2017 read with Rule 104 of CGST Rules 2017 and TNGST Rule 2017 on the following question: What is the rate of tax for the vadams made of maida and what is the HSN Code The Applicant has submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2. The Applicant has stated that the Maida papad is made with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Applicant submitted connected sale records/ Photographs of the product and that obtained on frying and also case studies in support of the argument held during the final personal hearing. They stated that the items are dried in oven and have baking soda for preservative, which can last for 6 months. But it is to be fried in oil for eating. It is sold as Maida Papad . They submitted that it is similar to T.T.K. Fryums , which is a papad. 3.2 The Applicant in their written submission stated that the manufacturing is done by mixing the material in dough and drying/heating the same in oven (and not sun drying). There is no change in the raw material used in the manufacture. As the law does not speak of any specific process of manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.3 The Applicant has stated that similar study was made by CESTAT in M/s. T.T.K. Pharma Limited Vs Collector of Central Excise in Order No. E/369/92-D = 1992 (8) TMI 183 - CEGAT, NEW DELHI arising in Appeal No. E/2556/91-D. In this case, the assessee, M/s. T.T.K. Pharma Limited are manufacturing of Fryums which were it was stated that they cannot be equated to Namkeen as they are ready to eat snacks but are similar to the popularly known as Papad which can be consumed only after processing, like frying. Hon ble CESTAT has stated that Commissioner has given clear finding that the item is covered by the description in Sl.No.5 of Notification No.5/99 dated 28.2.1999. He has seen the process of manufacture and found the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. The analysis of the relevant chapter heads are as under: Chapter 1905 of Customs Tariff states: 1905 - BREAD, PASTRY, CAKES, BISCUITS AND OTHER BAKERS WARES, WHETHER OR NOT CONTAINING COCOA ; COMMUNION WAFERS, EMPTY CACHETS OF A KIND SUITABLE FOR PHARMACEUTICAL USE, SEALING WAFERS, RICE PAPER AND similar products 1905 05 40 -Papad Chapter heading 21 of Customs Act covers Miscellaneous edible preparations Chapter Note 6 of Chapter 21 states as under: 6. Tariff item 2106 90 99 includes sweet meats commonly known as Misthans or Mithai or c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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