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TMI Blog2023 (9) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions of the applicant, the impugned products are not meant for consumption by the end users directly but are used in the process of ice-cream making, specifically used as toppings only. Hence, the impugned product under the name N.B.S. Crackle which is an industrial input cannot be classified under sugar boiled confectionery . The product by name Crackle , manufactured and supplied by the applicant containing the ingredients Sugar, Cashew Nuts, Butter, Liquid glucose and other permitted Flavours, not to be classified under the Tariff Heading 1704 enumerated at Serial number 32AA of Schedule III of Notification No. 01/2017 as a Sugar boiled confectionery. - SRI. K. RAVI SANKAR, AND SRI. RV PRADHAMESH BHANU, MEMBER Represented by : T. Bhanu Purdhviraj, CA ORDER (Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Whether the product by name Crackle , manufactured and supplied by the applicant containing the ingredients Sugar, Cashew Nuts, Butter, Liquid glucose and other permitted Flavours, should be classified under the Tariff Heading 1704 enumerated at Serial number 32AA of Schedule III of Notification No. 01/2017 as a Sugar boiled confectionery.? On Verification of basic information of the applicant, it is observed that the applicant is under Central jurisdiction i.e, Chirala Range , Nellore Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks are received from the Central jurisdictional officer concerned stating that no proceedings lying pending with the issue, for which the advance ruling sought by the applicant. 5. Applicant's Interpretation of Law: 5.1 The applicant submits that impugned product i.e. NBS Crackle is classifiable under tariff head 1704 enumerated at Serial number 32AA of Schedule II of Notification No. 01/2017, dated 28-6-2017. The Chapter 17 of the HSN is for 'Sugar Sugar Confectionery' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dictionary meaning the word 'confectionery' connotes any eatables which is made by compounding or mixing with sugar ingredients. The applicant submits that NBS Crackles manufactured by the assessee contain admittedly sweet ingredients. 5.4 Judicial Interpretation of the phrase 'Confectionery' The applicant, submits a case law to advance his arguments. In the case of Annapurna Biscuit (Mfg.) Co another v. The State of U.P and another (1975) 35 STC 127 (ALL) the Hon'ble Allahabad High Court held that biscuits were not confectionery. While dealing with the dispute the court observed as follows: The question with which we are concerned is whether biscuit can be said to be confectionery. The history of confectionery industry indicates that it developed with the cultivation of sugarcane. Many kinds of sweetmeats and candy were made by moulding sugar, nuts and fruits of various kinds into fanciful forms, One of the main ingredients used for manufacturing confectionery is sugar. Confectionery is essentially a sweetmeat. In certain preparations to the sweet base are added chocolate, fruits, nuts and peanuts, eggs, milk products, flavours and colours. In certain other pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y It includes mainly Indian traditional milk-based sweets such as burl, peda, rasogolla etc. In sugar confectionery, sugar is the main or principal ingredient while in other confectionery sugar is used as one of the ingredient. 5.8 Sugar Boiled Confectionery: Sugar Confectionery includes Sugar Boiled Confectionery As per Indian Standard IS 1008: 2004, sugar boiled confectionery includes following type of food products a) Hard Boiled Sugar Confectionery b) Pan Goods Confectionery (Dragees) c) Toffees Sugar boiled confectionery sold as hard boiled confectionery, pan good confectionery and toffee is a processed composite food article made from sugar with or without doctoring agents, such as liquid glucose and/or cream of tartar by a process of boiling whether panned or not with or without the addition of colour, flavour, fillings (in the form of liquid, semi-solid or solid) with or without coating of sugar or chocolate or both and other edible materials and made into any desired shape and size. As mentioned above, the N.B.S. Crackle manufactured by the Applicant is caramelized by boiling the sugar with the water. Subsequently, other edible products viz. cashew nuts and butter are coat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... III of GST Notification 01/2017 with 18% rate of tax. The relevant extract of serial number 12 is as under: Schedule III -9% S.No Chapter Heading/ Tariff Item Description of Goods (1) (2) (3) 12 1704 Sugar confectionery [other than mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis like puffed rice chikki, peanut chikki, sesame chikki, til chikki, til patti, til revdi, sugar makhana, groundnut sweets, gajak and sugar boiled confectionery] As stated above, NBS Crackle is a Sugar Boiled Confectionery and therefore the impugned product is classifiable under tariff head '1704' enumerated at Serial number 32AA of Schedule II of Notification No. 01/2017, dated 28-6- 2017 and chargeable at 12% rate of GST. 5.10 B. Specific Entry prevails over general entry The Applicant submits that the impugned products dealt by the Applicant are classifiable under Sugar Boiled Confectionery there are catena of case laws held in Supreme Court of India that a general entry or a residual entry will be preferred for a classification of commodity only in the absence of a specific entry. The Apex Court of India in the case of Indian Metals Ferro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is caramelized, Cashew Nuts, Butter and Liquid glucose should be added. - After that, the mixture should be cooled down and mixed in S.S Table. - After that, the mixture is now converted in to papads. Now these papadas are processed in Chilky/Butterscotch Nuts/NBS Crackles Machine. - After that, they are packaged in polythene bags, and sent for metal detection and finally packed in corrugated boxes for dispatch. The applicant specifically sought advance ruling in respect of classification of the impunged product identified under the name NBS Crackle .According to the applicant ,the impugned product manufactured by them is a format of 'sugar boiled confectionery' since their product under the name 'NBS Crackle' also employ the same ingredients, formulations and the same processes. Thus ,according to the applicant, the impugned product has the ingredients, formulations, processes which are similar to ingredients/formulations/processes employed with what is traditionally classified as 'sugar boiled confectionery' and therefore the subject product needs to be classified as 'Sugar boiled confectionery' falling under Chapter Heading 1704 and covered by S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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