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TMI Blog2021 (9) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... e cooked preparations, do not require any processing for human consumption and hence are ready to eat food preparations whereas the subject products are not only different from the said khakhra, plain chapatti or roti, but are also not like products in common parlance. The composition of paratha (wheat flour 36% to 62%) is different from composition of khakhra/ plain chapatti/roti. Moreover, paratha also requires further processing for human consumption as admitted by the applicant themselves. The impugned product paratha is not Khakhra, plain chapatti or roti. The said Entry No.99A of Schedule I to the Notification No.01/2017-Central Tax(Rate) dated 28-6-17(as amended vide Notification No.34/2017-Central Tax(Rate) dated 13-10-17) is not applicable for Paratha . The product Paratha of the applicant will be covered under: (i) Entry No.453 of Schedule-III of Notification No.01/2017-Central Tax(Rate) dated 28-6-17 for the period from 1-7-17 to 14-11-17 and (ii) Entry No.23 of Schedule-III of Notification No.01/2017-Central Tax(Rate) dated 28-6-17(as amended by Notification No.41/2017-Central Tax(Rate) dated 14-11-17) with effect from 15-11-17 and will be liable to GST at the rate of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aratha is consumed by the people at large with vegetables, pickles and also with chicken and meat; that in Indian subcontinent, paratha is commonly and ordinarily eaten in households with curies, the way chapatti or fulka or rotla are consumed with vegetables, pickles, meat etc. and depending upon the region and the State, the people use chapatti or fulka or rotla or paratha or any such bread; that the manner and method of consumption of all such unleavened flat bread are same and similar; that, undoubtedly, chapatti, roti fulka and paratha share a close resemblance to one another as not only the method of preparation or cooking, but even the manner of use and consumption are same and similar for all such products. 4. The applicant has further submitted that the word 'Paratha' is not defined under the GST; that it is a common eatable used all throughout the country and also in some foreign countries and therefore the dictionary meaning and the common parlance understanding of the product would be relevant for considering the nature of the product and its classification under GST Tariff. Definition/meaning of 'Paratha' as per various dictionaries is as follows: (i) In New Oxford ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 1905 covers various eatables including 'bread' under HSN code 1905 and various explanatory notes are given about the scope and coverage of this classification code; that it is clarified specifically under HSN explanatory notes that heading includes 'Unleavened bread'; that it is also clarified under part(A) of Explanatory notes that the most common ingredients of the products were cereal flours, leavens and salt, but they may also contain other ingredients; that in this context, unleavened bread are specifically referred to under Part(A) of the explanatory notes; that under Part(B) of the explanatory notes also, it is clarified that this heading covers a number of products made from flour; that it prima facie appears that Heading 1905 is a specific heading for products made from flour and unleavened bread are specifically covered under HSN Code 1905. 6. The applicant has further submitted that roti, chapatti and its variants are covered under Sl.No.99A of Notification No.01/2017-CT as amended by Notification No.34/2017-Rate; that under column(2) of Schedule-I to the above notification, the heading/subheading/Tariff item shown are 1905 or 2106; that the products under column(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Lachha Paratha or Malabar Paratha are products not containing any additional ingredients like onion or alu or vegetables; that mixed vegetable paratha, onion paratha, alu paratha, methi paratha etc. are also paratha, and the ingredients like vegetables are mixed only for taste and flavour; that by adding such ingredients, the nature of the food product does not change at all, and the product is still paratha only; that in common parlance also, such products are known, called, bought, sold and consumed as paratha and therefore such varieties of paratha are also basically a flat unleavened bread fried on a griddle, and hence merit classification under Heading 1905 of the Tariff. 9. The applicant has further submitted that the method of preparation and cooking as well as the manner of consumption are same and similar in respect of roti, chapatti, fulka, rotla and paratha; that however, roti and chapatti are classified under Heading 1905 of the Tariff because they are accepted to be flat unleavened bread of flour as specified under HSN Code 1905; that therefore paratha being a product having a close resemblance to roti and chapatti would also merit classification under HSN code 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Vadilal Quick Treat Paratha on pre-heated pan or griddle (DO NOT THAW). * Heat on a medium flame for about 3-4 minutes (flipping after every 30 seconds) pressing gently till the paratha is golden brown on both sides. * For additional taste and crispness, one teaspoon of oil or butter may be used during heating. * Vadilal Quick Treat Paratha is now ready to eat. 14. We find similar instructions on the 'packing covers' of the rest of the parathas too. From the above, it is forthcoming that the 'parathas' supplied by the applicant are not 'ready to eat food preparations' OR 'products ready for consumption', but are products on which 'cooking process' needs to be carried out as per the cooking instructions given on the 'packing covers' in order to make them 'ready for consumption'. It is also specifically mentioned in the cooking instructions that the 'parathas' are to be heated for about 3-4 minutes till the colour of the paratha changes to golden brown on both sides. 15. The applicant has submitted that their product various types of Paratha are made up of wheat flour which is the main ingredient and percentage of wheat flour varies from 36% to 62% and other ingredients ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 60 --- Food flavouring material 2106 90 70 --- Churna for pan 2106 90 80 --- Custard powder --- Other : 2106 90 91 ---- Diabetic foods 2106 90 92 ---- Sterilized or pasteurized millstone 2106 90 99 ---- Other 16.1 Further, Sr.No.5 of the supplementary notes of Chapter 21 reads as under: "5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes: (a) protein concentrates and textured protein substances; (b) preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption; (c) preparations consisting wholly or partly of foodstuffs, used in the making of beverages of food preparations for human consumption; (d) …….." It can be deduced from Sr.No.5(b) above, that Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), includes only products which requires some sort of process such as cooking, dissolving or boiling in water, milk or other liquids before consumption by human. Also, explanatory notes to the Harmonised Commodity Description and Coding System, with regard to heading 2106, at clause(A) specifies that the said hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall 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 description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b) , they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." 17. The said Rule 1 is not applicable in the instant case since there is no specific mention of the word 'Paratha' in any Heading, Chapter Note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not require any processing for human consumption and hence are ready to eat food preparations whereas the subject products are not only different from the said khakhra, plain chapatti or roti, but are also not 'like products' in common parlance. The composition of paratha (wheat flour 36% to 62%) is different from composition of khakhra/ plain chapatti/roti. Moreover, 'paratha' also requires further processing for human consumption as admitted by the applicant themselves. It has also been discussed in the earlier paras that the varieties of 'parathas' supplied by the applicant are not 'ready to eat food preparations' OR 'products ready for consumption', but are products on which some 'cooking process' needs to be carried out to make them 'ready for consumption' i.e. they need to be heated on a pre-heated pan or a griddle for 3-4 minutes as per the cooking instructions printed on the packing covers of these products in order to make them ready for consumption. Hence, we find that the impugned product 'paratha' is not 'Khakhra, plain chapatti or roti. We hold that the said Entry No.99A of Schedule I to the Notification No.01/2017-Central Tax(Rate) dated 28-6-17(as amended vide Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tituted; 21.4 Notification No. 01/2017-Central Tax(Rate) dated 28-6-17 was further amended vide Notification No.41/2017-Central Tax(Rate) dated 14-11-17 after which the said entry(w.e.f. 15-11-17) reads as follows: Sl.No. Chapter / Heading / Subheading / Tariff item Description of Goods 23 2106 Food preparations not elsewhere specified or included [other than roasted gram, sweetmeats, batters including idli/dosa batter, namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, khakhra, chutney powder, diabetic foods]. 22. Therefore, in view of the facts mentioned above, we hold that the product 'Paratha' of the applicant will be covered under: (i) Entry No.453 of Schedule-III of Notification No.01/2017-Central Tax(Rate) dated 28-6-17 for the period from 1-7-17 to 14-11-17 and (ii) Entry No.23 of Schedule-III of Notification No.01/2017-Central Tax(Rate) dated 28-6-17(as amended by Notification No.41/2017-Central Tax(Rate) dated 14-11-17) with effect from 15-11-17 and will be liable to GST at the rate of 18%(9% SGST + 9% CGST). 23. In Conspectus of above findings, we issue the Ruling: RULING 1. 'Paratha' merits classification at HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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