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TMI Blog2022 (7) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... constituents as has been pleaded by the Applicant. By no stretch of imagination, the product in question can be brought under the ambit of Chapter 04 of the HSN. Thus, we definitively rule out the classification of the impugned product under Chapter 04 of the HSN. Classification of the product under Chapter 1704 - HELD THAT:- The Chapter 17 of the HSN is for Sugar Sugar Confectionery . While 1701 to 1703 headings relate to Sugars in different forms, the Heading 1704 mentions Sugar Confectionery. Sugar Confectionery has nowhere been specifically defined under the GST law or under HSN - the product Anna Malai Mithai cannot be terms as Chewing Gum (1704 10 00) or Jelly Confectionery (1704 90 10) or Boiled Sweet (1704 90 20) or Toffee, caramel etc (1704 90 30). Clearly the product is neither a gum nor boiled sweet nor toffee or caramel. That leaves residual entry Others (1704 90 90) if at all the impugned product is to be brought under the purview of Chapter 17. There is no specific entry under Chapter 17 which would encompass the impugned product even by a remote chance. Moreover, the residual entry i.e., Others (1704 90 90) is to take care of other similar products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Mamaji Toll KantaGali, Indore (M.P) 452020 (hereinafter referred to as the Applicant), registered under the Goods Services Tax. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MPGST Act would be mentioned as being under the GST Act. 2. BRIEF FACTS OF THE CASE AND SUBMISSION OF THE APPLICANTS IN THEIR APPLICATION IS AS UNDER - 2.1. The Applicant is engaged in the manufacture and supply of confectionery and dairy/sweet products. The applicant primarily manufactures dairy/sweet products and confectionery items like milk chocolates, milk compound chocolates, candies and lollypops. 2.2. One of the products that the applicant manufactures and sells the same under the brand name Anna Malai Mithai . As per the applicant, it is Rabdi recognized as a Mithai or Misthan in the common parlance. It contains the following ingredients: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they are known, sold and consumed as sweets. 2. That as per the observation of the Hon ble tribunal in case of Hindustan Lever Lid. v. CCE. Mumbai [2005 (189) E.L.T. 53 (Tri. - Mumbai)]. wherein the Tribunal held that sweet meals are now being sold at grocery stores and general departmental stores and that it is not necessary that any product must be sold al traditional halwai shops in order to be classified as a sweet meat. We further submit that many famous brands such as Haldiram, Bikanerwala. Milan Mithai etc. are sold in such ready to consume packets in departmental stores, local kirana stores and even on e-commerce market places. 3. That the only difference between the product that is commonly sold in the market as Rabdi and our product is that our product is packed in small sized sachets. We submit that merely packing the product in smaller quantities does not alter the inherent nature or identity of the product. Thus. even if it is packed in sachets which are easily marketable, it still remains a sweet meat. Packing the said product in such small sachets is useful in consuming the product readily. 4. The Applicant is marketing the said product as Mith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mithai or by any other name . In view of such broad scope of the note, the appellant's claim for classification has to be accepted, because there could be no doubt that the items are sweet meat. Dictionary refers to sweet meat as food rich in sugar . Thus, despite sugar being the pre-dominant ingredient, in view of the note the items can't go under sugar confectionary. C. Alternatively, the same may be classified as a dairy product: The Applicant also submitted that their product closely resembles a dairy product and on the assumption that if the Hon ble Authority deems that the said product is not classifiable as a Sweet Meat product, then the same may be classified as a dairy product. The product in question is almost completely a milk-based item which is only subjected to addition of certain flavours to skimmed milk powder, whey powder and sugar. Thus. the impugned product may be considered for classification under Chapter Heading 0404 90 00 since it contains natural milk constituents i.e. skimmed milk powder, whey powder along with sugar. D. Further the applicant also in support of the argument gave example of the ruling passed by this authority in M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining added fruit or cocoa. Now while chapter head 0401 to 0406 are meant for natural dairy products viz. Milk, Cheese, Butter Milk, Butter, Whey etc. and other products made out of such items, the product in question i.e. Anna Malai Mithai contains Skimmed Milk Powder, Whey Powder, Sugar, Emulsifiers etc. as predominant ingredients, which would not make it appropriate to be classified as a product of natural milk constituents as has been pleaded by the Applicant. By no stretch of imagination, the product in question can be brought under the ambit of Chapter 04 of the HSN. Thus, we definitively rule out the classification of the impugned product under Chapter 04 of the HSN. 5.5. Now we proceed to examine the classification of the product under Chapter 1704. We find that the Chapter 17 of the HSN is for Sugar Sugar Confectionery . While 1701 to 1703 headings relate to Sugars in different forms, the Heading 1704 mentions Sugar Confectionery. Sugar Confectionery has nowhere been specifically defined under the GST law or under HSN. However, going by the trade parlance and prevailing practice, the Sugar Confectionery has been classified as under: 1704 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmonly known as mithai ) is more specific than this. 5.9. In this context, Food Safety and Standards Regulations, 2011 may be considered relevant, wherein clause 2.7 provides for the items that are classified as confectionary and includes the following: 2.7.1 Sugar boiled confectionery 2.7.2 Lozenges 2.7.3 Chewing gum and bubble gum 2.7.4 Chocolate 2.7.5 Ice lollies or edible ices Therefore, in light of the above sugar confectionery seems to cover category of items similar to the above list, and traditional Indian sweets cannot be said to form a part of confectionary in the traditional sense of the word. Hence, the others category of chapter 17 for sugar confectioneries should not be extended to cover all other traditional Indian sweet items and can only include such other similar confectionery items as defined above. 5.10. Furthermore, in the aforementioned FSSAI regulations, in several places Traditional Indian Sweets in general and Halwa, Mysore paag, boondiladdoo, jalebi, khoya barfi, peda, gulab jamun, rasgulla and similar milk-based sweets sold by any name, in specific, have been used together depicting them as a single category of food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionery as already discussed above. However, there is no doubt that being edible preparation, manufactured under due license issued by concerned Government authorities, it would merit classification under Chapter 21 i.e., Miscellaneous Edible Products . Once the chapter is decided, a careful examination of different entries under Chapter 21, the quest for appropriate classification rests finally at 2106 90 99, the residual entry, as the product itself does not find specific place anywhere else in the Chapter 21. We thus conclude that the impugned product viz. Anna Malai Mithai would merit classification as Miscellaneous Edible Product under Chapter Heading 2106 90 99, as Sweetmeat and chargeable to GST as applicable. 5.14. Applicant reference to the ruling passed by this authority in M/s. ITLIAN EDIBLES PVT. LTD. Dated 18-09-2018 cannot be taken into consideration as per section 103 of GST Act. 5.14. Having observed as above, we further hold that the impugned goods shall be aptly classifiable under Chapter Head 2106 90 99 as Sweetmeats We also find it necessary to mention here that the classification decided by this Ruling shall be effective prospectively and this r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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