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TMI Blog2021 (12) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... d product. It is clear that Tariff heading 1106 covers flour, meal and powder of individual raw materials of either leguminous vegetables(of heading 0713) or roots or tubers(of heading 0714) or of products of Chapter 8. Like other tariff headings in the Chapter, tariff heading 1106 also covers products of individual raw material and not mixtures. Rava Idli mix is admittedly a mixture of flour of pulses, cereals and other ingredients resulting in a different product. Thus the impugned product does not get covered under this tariff heading i.e. 1106. In the instant case the impugned product is admittedly a mixture and does not give the character of either of the constituent flour but altogether a different new product with the different character as Rava Idli Mix . Therefore the impugned product is rightly classifiable under Rule 3(a) supra and hence Rule 3(b) is not applicable. Further as the impugned product is covered under rule 3(a), there is no need to look into rule 3(c) - the impugned product Rava Idli Mix merits classification under tariff heading 2106 and attract the GST rate of 18%, in terms of entry number 23 of schedule-III to the Notification No. 01/2017-Central Tax (Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d pulses from open market b) Such cereals/grains & pulses are sorted, washed and then sent to grinding machine, where it is grinded into flour. c) Sometimes, the applicant purchases the flour directly from the vendors. d) The flours of cereals/grains & pulses are mixed in certain proportion added with certain spices. The mixed content is commonly known as "Rava Idli Mix" e) At the processing unit, the applicant does not carry on any process of cooking, but carries on only mixing process, whereby spices, condiments are mixed with flour of grains, cereals and pulses. Flour of grains, cereals and pulses are used in its primary farm. f) The product "Rava Idli Mix" is packed in different quantities as per the marketing requirements and distributed through the marketing distribution channel. g) On the packaging, along with other statutory disclosures, applicant also prints the recipe containing the process of preparing Rava Idli by using the subject product adding certain other ingredients such as sour curds and coriander leaves. h) Every consumer of the product "Rava Idli Mix" is required to follow the process of mixing and adding such other ingredients later to be cooked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) (3) (4) (5) Wheat & Rye 45% 2.5% 80% -- Barley 45% 3% 80% -- Oats 45% 5% 80% -- Maize (Corn) and 45% 2% -- 80% Rice 45% 1.6% 80% -- Buckwheat 45% 4% 80% -- e) For the purpose of heading 1103, the terms "groats" and "meal" mean products obtained by the fragmentation of cereal grains, of which : i. In the case of maize (corn) products, at least 95% by weight passes through a woven metal wire cloth sieve with an aperture of 2 mm; ii. In the case of other cereal products, at least 95% by weight passes through a woven metal wire cloth sieve with an aperture of 1.25 mm. 6.2 The applicant with regard to coverage of the products under heading 2106 stated as under: a) Chapter 21 covers Miscellaneous Edible Preparations, as per the harmonized system of nomenclature. b) As per chapter 5 heading 2106 includes i. Protein concentrates and textured protein substances; ii. Preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption; iii. Preparations consisting wholly or partly of foodstuffs, used in the making of beverages of food preparat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or tubers of heading 0714 or of the products of chapter 8". Further as per chapter note 2 of chapter 11 of first schedule to the Customs Tariff Act 1975, "this chapter does not cover products if they do not have by weight on the dry product a starch content of 45% and an ash content not exceeding 1.6%." e) The content of pulse flour is considerable and as per the common parlance test said products are understood to be instant mixed flour in the market; looking at the process of the preparation of instant mixed flour and proportion of ingredients used in preparation, it is deduced that flours of grains and pulses are the major component of the said finished products; the said grains and pulses shall very well be covered under heading '0713' having brief description 'Dried Leguminous Vegetables' and accordingly, instant mixed flour made from such dried leguminous vegetables shall be classified under heading '1106' having brief description 'Meal and Powder of the dried leguminous vegetables of heading 0713'. f) Heading '2106' is related to edible and food preparation, with brief description 'Food preparation not elsewhere classified' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable." l) The more specific heading, on the basis of rules 3(a) & 3(b) of general rules for interpretation of customs tariff, would be 1106 as the tariff item 2106 is a residual entry. As the items are specifically covered under rule 3 (a) of general rules, the need for seeing rule 3(c) may not arise. m) The product is required to be classified under chapter 11 under sub-heading 1106 as the major raw material for "Rava Idli Mix" is a flour of grains which are produced by milling industry. n) The Central Government has clarified vide circular No.80/54/2018-GST dated 31.12.2018 that Chhatua or Sattu is a mixture of flour of ground pulses and cereals. HSN code 1106 includes the flour, meal and powder made from peas, beans or lentils (dried leguminous vegetables falling under 0713). Such flour improved by the addition of very small amounts of additives continues to be classified under HSN code 1106. If unbranded, it attracts NIL GST (Sl.No.78 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017) and if branded and packed it attracts 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 10. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant & the submissions made by their learned representative during the time of hearing. 11. The applicant is a manufacturer of various food products, one amongst which is the product "Rava Idli Mix". The applicant, at present, are classifying the said product under tariff heading 2106 9090 & have been discharging 18% GST. An independent expert, on examination of the classification, felt that the classification of the said product under tariff heading 2106 9090 is incorrect and it merits classification under tariff heading 1106 1010. Hence the applicant filed the instant Application, seeking the right classification of the impugned product. 12. In view of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Chapter under the above provisions shall be classified in heading 1101 or 1102 if the percentage passing through a woven metal wire cloth sieve with the aperture indicated in column (4) or (5) is not less, by weight, than that shown against the cereal concerned. Otherwise, they fall in heading 1103 or 1104. Cereal Starch Content Ash Content Rate of passage through a sieve with an aperture of 315 micrometres (Microns) 500 Micrometres (Microns) (1) (2) (3) (4) (5) Wheat & Rye 45% 2.5% 80% -- Barley 45% 3% 80% -- Oats 45% 5% 80% -- Maize (Corn) and 45% 2% -- 80% Rice 45% 1.6% 80% -- Buckwheat 45% 4% 80% -- From the above it is seen that the Tariff headings from 1101 to 1104 covers products of milling of specific cereals listed in Column(1) of the table, with a defined starch and ash content, and having a particular size/texture. In the instant case it is an admitted fact that the impugned product is manufactured by mixing the flours of certain cereals and pulses, the details of which have not been disclosed by the applicant, and hence it is a mixture and neither tallies with the content at column (1) of the above table nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ixture of flour of cereals, pulses and other constituents. It is very clear that the circular is in respect of flour of individual pulses with addition of flour of cereals as additive, but not in respect of mixture of the flours of cereals and pulses. Further it says- bout addition of very small amounts of additives, but not addition of different flours of cereals and pulses resulting in a different product. Thus the circular supra is not applicable to the instant case. 17. Chapter 21 covers Miscellaneous edible products and tariff heading 2106 covers food preparations not elsewhere specified or included. In view of the above, the impugned product merits the classification under tariff heading 2106, as the same is an edible product & food preparation not specified elsewhere. Further Rule 3(a) of the general rules for the interpretation of customs tariff specifies that "when goods are prima facie classifiable under two or more headings, classification shall be the heading which provides the most specific description shall be preferred to headings providing a more general description". Thus the tariff heading 2106 is more specific classification of the impugned product. 18. Rule 3( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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