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TMI Blog2020 (10) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... artnership firm, registered under the GST Act 2017 vide GSTIN No. 33AANFG4672P1ZR. The Applicant has sought Advance Ruling on the following question: i. What would be the accurate HSN code and consequently, the rate off GST applicable on pre-mix popcorn maize packed with edible oil and salt? Whether the same can be classified under HSN Heading2008 and whether the same shall be chargeable to tax at the rate of 12%. ii. If so, whether the said rate of Goods and Services Tax rate of 12% is applicable retrospectively with effect from 1st July 2017. The applicant submitted a copy of challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant have stated that they are engaged in the business of processing, packaging of maize corn together with commodities such as flavoring, seasoning. The applicant is primarily engaged in importing/procuring popcorn maize which undergoes fumigation and cleaning and other related processes. This processed popcorn maize is sold along with edible oil and salt and this mixture is then commercially sold as pre-mix ready to cook popcorn. They have stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 19 90 and attracts GST@12%. The applicant has also stated that they should be entitled to a retrospective classification under Chapter2008 and the tax so paid in excess should be refunded which would in turn be passed to their customers. 3. The applicant was given an opportunity to be personally heard on 26.09.2019. The applicant appeared before the authority and stated that the product is Maize corn which they are importing after fumigation and processing at low temperature and humidity. They undertook to submit detailed manufacturing process with the details of ingredients for each of the varieties of pre-mix. The main ingredients in all are oil and salt and preservatives apart from maize corn. They stated that there is a Central Excise ruling in respect of a different company where pre-mix was classified under HSN 2008. They stated that they have been classifying their product under HSN 2106 since 2015. They also stated that they will submit the required documents along with FSSAI for each product in 2 weeks. 4. 1 As undertook during the Personal Hearing, the applicant filed the following additional submissions on 18.10.2019. i. List of end products dealt by the company S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and turmeric and various other flavours. The product is called 'Gold Label Salted Mix', 'Gold/Silver Label Regular Mix', 'Platinum Label Salted Mix', 'Jumbo Mushroom Regular Mix', 'Organic Corn Salted Mix', and 'Silver Label Salted Mix'. It is seen from the packaging that they are 'specifically packed for popcorn vending machines. Not for retail sale'. The Ingredients mentioned on the packaging are: Corn, RBD Plamolien oil, Iodised Salt and some of them have added flavours such as Butter Flavour, Turmeric Powder, Natural Carotenoids, natural food colours etc. We find the applicant has filed the application seeking ruling on whether their product shall be classifiable under HSN 2008 and accordingly, leviable to GST 0 12%. It is also stated that they have been classifying the pre-mix popcorn packets under HSN 2106 9099 and has been discharging GST 7.1 Under GST, the applicable rates of CGST are notified by Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 and in terms of explanation (iii) and (IV) to the said Notification, (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the Fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided for in Chapter 7,8 or 11 or elsewhere in the Nomenclature. Explanatory Notes to CTH 2008 states: This heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in the preceding headings of this Chapter. It includes inter alia : The products of this heading may he sweetened with synthetic sweetening agents e,g., sorbitol) instead of sugar. Other substances (e.g. starch) may be added to the products of this heading, provided that they do not alter the essential character of fruit, nuts or other edible parts of plants. The products of this heading are generally put up in cans, jars or airtight containers, or in casks, barrels or similar containers. 7.3 Chapter 20 covers 'Preparations of vegetables, fruit, nuts or other parts of plants. As per Explanatory Notes to Chapter 20 covers vegetables, fruit, nuts and other edible parts of plant prepared r preserved not provided for in Chapter 7, 8 and 11. It is seen that these processes in Chapter 7, 8, and 11 include freezing, steaming, boiling, dried, provisionally pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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