9911796707
TMI Blog2021 (7) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 Central Tax (Rate) dated 28.06.2017 clarifies that the rules for interpretation of the First Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. All the products other than Halwa - fall under the category of Namkeens classifiable under Customs Tariff Heading 2106 90, liable to GST at the rate of 5 % as per entry at SI Nos. 101 and 101A of Schedule I of N/N. 01/2017 Central Tax (Rate) dated 28.06.2017? - HELD THAT:- Applying the principles of interpretation in Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 the Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapoica Chips and Potato Chips (Whether salted/ masala or otherwise) are classifiable under Tariff Heading 2008 19 40 of the Customs Tariff Act, 1975. Regarding classification of roasted /salted / roasted and salted Cashew nuts, Ground nuts and other nuts there are specific headings under Chapter 20 that covers the products. Accordingly, roasted /salted / roasted and salted Cashew nuts are classifiable under Tariff Heading 2008 19 10 and othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1/2017? 4. Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name, can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017? 4. Contentions of the Applicant: 4.1. The Jackfruit Chips, Banana Chips, Sarkara Varatty and Halwa are sold without brand name. Jackfruit chips are made by frying the fruit in edible oil. Banana Chips are made by slicing raw / ripe bananas into thin round pieces and frying in edible oil. Salt and Turmeric are also applied. By adding masala, fried banana masala chips are prepared. Sarkara Varatty is made by frying thick pieces of banana slices in edible oil. Thereafter, they are mixed thoroughly in dense syrup of jaggery and then mixed in powder of dried ginger and cardamom. Halwa is made by cooking prepared maida flour in edible oil. After cooking, sugar and flavour are added and Halwa is ready for sale. Thus Jackfruit Chips, Banana Chips, Sharkara Varatty and Halwa are edible preparations and the first two ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 Entry Other 4.3. IN RE: P.M. SANKARAN [KER/53/2019 Dated 21st June 2019] and KER/66/2019 dated SEPTEMBER 30, 2019 of this Honourable Authority, it is held that Jackfruit Chips, Banana Chips and Sharkara Varatty fall under HSN 2008.19.40 and have to be classified under Entry 40 of Schedule II of Notification No.1 of 2017 and tax at 12% is liable to be paid. Relevant entries are reproduced below for easy reference; Entry 40 / Sch. II Notfn No.01 of 2017 HSN 2008 Fruits, nuts and other edible parts of plants, otherwise prepared or of preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included; such as ground nuts, cashew nut roasted, salted or roasted and salted, other roasted nuts and seeds, squash of mango, lemon, orange, pineapple or other fruits. Chapter 20 Chapter Heading Preparations of vegetables, fruit, nuts or other parts of plants. Chapter 20 Chapter Note 1 This chapter does not cover: Vegetables, fruit or nuts, prepared or preserved by the processes specified in chapter 7, 8, or 11. Chapter 8 Chapter Heading EDIBLE FRUIT AND NUTS, PEEL OF CITRUS FRUIT OR MELONS 0803 Entry Bananas, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds "roasted and fried". So, it is a cumulative condition. Banana Chips, Jack Fruit Chips and Sharkara Varatty are made by frying banana/ jack fruit in edible oil. Being fruits and being not "ROASTED AND FRIED", these cannot be classified under 2008.19.40. In any case, banana and jack fruit are covered by HSN Code 0803 and 0810.90.90 respectively and on this primary ground they cannot be classified under HSN 2008 Advance Ruling IN RE: P.M. SANKARAN [KER/53/2019 Dated 21st June 2019] ruled that Baked Chips come under HSN 2008 19 40 and taxable at 12% as per Entry 40 of 2nd Schedule. [Notification No.1/2017/CT (Rate) dated 28.06.2017 & SRO.No.360/2017]. "From the Ruling, it appears that the applicant himself had conceded that banana chips supplied by him were "baked chips". The Ruling is on the basis of ingredients and classification reported by the applicant and not on an analysis of the products. 4.6. Further, in P. BASHEER Vs. STATE of KERALA [1993] 91 STC (291) it was held by Honourable High Court of Kerala that the products such as banana chips, tapioca chips, murukku, pakkavada, etc are fried food articles. Relevant portion of the judgment is reproduced below for easy referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps, murukku, achappam, pakkavada and mixture were sold or marketed by the dealer, who is really a baker"cannot be covered by the entry "bakery products" within the meaning of those words as occurring in the Kerala General Sales Tax Act. This is so especially in the context and collocation of words occurring in the First Schedule to the Kerala General Sales Tax Act." 4.7. The ADVANCE RULING NO. KER/66/2019 dated SEPTEMBER 30, 2019, was also a case where applicant himself had raised the query whether Banana Chips, Chakka Chips, Cheema Chakka Chips, Chembu Chips, Kappa Chips, Sharkaravaratty, KovakkaiVattal and Pavakkai Vattal are classifiable under HSN Code 2008 19 40 - Other roasted and fried vegetable products and is liable to GST at the rate of 12% as per SI.No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate), dated 28.06.2017. This query was answered by the Authority for Advance Ruling in favour of the applicant. "Applicant had submitted a list of commodities as Namkeen items. The query raised was whether the "Namkeen Items" - Achappam, Avalose Podi, Cheeda, Diamond Cuts (Hot), Kuzhalappam, Murukku and Thatta are classifiable under HSN Code 2106 90 and is liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l hearing on 06.01.2021 by virtual mode. Shri. C. Seshadrinadan, CA Authorised Representative of the applicant attended the personal hearing. He reiterated the contentions made in the application and also submitted a Hearing Note summarising the submissions made in the application. Since we have already extracted in detail all the contentions raised by the applicant in the application, the contents of the argument note is not reproduced to avoid repetition. 7. Discussion and Conclusion: 7.1. The matter was examined in detail. The issue to be determined is the classification and rate of tax of Jackfruit Chips, Banana Chips, Sharkara Varatty, Halwa, Tapioca Chips, Potato Chips and roasted / salted / roasted and salted preparations of Ground nuts, Cashew nut and other seeds supplied / to be supplied by the applicant. The contention of the applicant is that the products Sharkara Varatty and Halwa fall under the category of "Sweetmeat" and all the others fall under the category of "Namkeens" and hence is appropriately classifiable under Customs Tariff Heading 2106 90 and is liable to GST at the rate of 5 % as per entry at SI Nos. 101 and 101A of Schedule I of Notification No. 01/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance' shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. Rule 3: When by application of rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise descr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 of the Customs Tariff Act, 1975. Regarding classification of roasted /salted / roasted and salted Cashew nuts, Ground nuts and other nuts there are specific headings under Chapter 20 that covers the products. Accordingly, roasted /salted / roasted and salted Cashew nuts are classifiable under Tariff Heading 2008 19 10 and other roasted /salted / roasted and salted nuts and seeds are classifiable under 2008 19 20 of the Customs Tariff Act, 1975. The product Halwa being prepared using maida and sugar is a sweetmeat and is appropriately classifiable under Customs Tariff Heading 2106 90 99. 7.7. Having come to the conclusion that all the products other than Halwa are classifiable under different Tariff Items of Heading 2008 of Chapter 20 of the Customs Tariff Act, 1975 we now proceed to determine the rate of GST applicable on the products. The entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows; SI.No. Chapter / Heading / Sub-Heading / Tariff Item Description of goods 40 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
