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TMI Blog2019 (4) TMI 1860X X X X Extracts X X X X X X X X Extracts X X X X ..... isture and for softening and puffing and for removing the skin and the same is found acceptable. It is also seen that no oil or salt is used in the process and is only dry heat. Hence as per the Clarification issued in the above Circular, the commodity in question Puffed Gram commonly called Fried Gram or Hurigadale or Putani in Kannada would be covered under HSN Code 0713. The goods in question are covered under serial no. 45 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, if the same are not branded and packed in unit containers. If the same goods are branded and packed in unit containers, they get covered under serial no. 25 of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 and is liable to tax at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Indirect Taxes and the Commissioner of Commercial Taxes have issued Circulars bearing No. 113/32/2019/ GST dated 11.10.2019 and bearing No.18/2019-20 dated 14.10.2019 respectively and on mere reading of the para 3 of the Circulars, it is seen as under classification of leguminous vegetables when subject to mild heat treatment (parching): Doubts have been raised whether mild treatment of leguminous vegetables (such as gram) would lead to change in classification. It is clarified that Dried Leguminous Vegetables are classified under HS Code 0713. Thus it is clarified that such leguminous vegetables which are subjected to mere heat treatment for removing moisture, or for softening or puffing or removing the skin, and not subjecting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant states that the Bengal gram grown by the agriculturists contain impurities like dust, mud, sticks etc. and after purchasing the goods, they are packed in gunny bags and transported and sent for cleaning to remove the sand and other impurities. Subsequently, the gram is graded. After that grading, the gram is again cleaned and sent for pre-heating by 110 degrees centigrade for removing the water content if any in the gram in a apiral conveyor and temporarily held in sacks or wooden tanks for nearly 8 hours for cooling naturally. c. The applicant states that they prepare for second heating of the same Gram by sprinkling with water and then dried and heating again at 210 degree centigrade passed through conveyor belt between a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orised representative of the above concern appeared and reiterated the above submissions made. He submitted that the application for advance ruling is admissible as it is related to the determination of liability to pay tax on the goods and hence gets covered under section 97 (2) (e) of the CGST Act, 2017. He also submitted that the applicant contends that the product sold by them falls under HS Code 0713 as per the Circular No. 113 dated 11.10.2019 and since it is not branded, is exempt from GST. 6. FINDINGS DISCUSSION: 6.1 The contentions of the applicant is verified and the following question needs to be answered - whether the parched / puffed gram sold by the applicant is exempt from tax . 6.2 As per the applicant, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are classified under HS code 0713. As per the explanatory memorandum to the HS 2017, the heading 0713 covers leguminous vegetables of heading 0708 which have been dried, and shelled, of a kind used for human or animal consumption (e.g., peas, chickpeas etc.). They may have undergone moderate heat treatment designed mainly to ensure better preservation by inactivating the enzymes (the peroxidases in particular) and eliminating part of the moisture. 3.3. Thus, it is clarified that such leguminous vegetables which are subjected to mere heat treatment for removing moisture, or for softening and puffing or removing the skin, and not subjecting to any other processing or addition of any other ingredients such as salt and oil, would be cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicability of tax, it is seen that the above Circular continues to state that if such goods. if branded and packed in a unit container would attract GST at the rate of 5% IS. No. 25 of notification No. 1/2017- Central Tax (Rate) dated 28.06.2017]. In all other cases such goods would be exempted from GST [S. No. 45 of notification No. 2/2017- Central Tax (Rate) dated 28.06.2017]. From the above, it is seen that the goods in question are covered under serial no. 45 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017, if the same are not branded and packed in unit containers. If the same goods are branded and packed in unit containers, they get covered under serial no. 25 of Notification No. 1/2017- Central Tax (Rate) dated 28.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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