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TMI Blog2024 (6) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... of food preparations ((i) Gota flour (ii) Khaman flour (iii) dalvada flour (iv) Dahiwada flour (v) Dhokla flour (vi) Idli flour (vii) Dosa flour), for human consumption. Further, these products are preparations for use, either directly or after processing, such as cooking, dissolving or boiling in water, milk, etc., for human consumption - all the aforementioned 7 products of Mix flour / Instant Mix flour are appropriately classifiable under 21.06 of the HSN. As these products are not specifically mentioned under any specific Tariff Item of Chapter Heading 2106 of the CTA, 1975, these products are classifiable under the residuary entry i.e. Tariff Item 2106 90 99 as Other . Mix Flour / Instant Mix Flour - HELD THAT:- Any product which is a food preparation and which is not elsewhere specified or included in the CTA. 1975, gets covered under Chapter Heading 2106 of the CTA, 1975. Therefore, merely because the end consumer of the Instant Mix Flour is required to follow certain food preparation processes before such product(s) can be consumed, is no ground to take these products out of Chapter Heading 2106 of the CTA, 1975. - SAMIR VAKIL AND B.V. NAGA KUMARI, MEMBER Present for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. Thus, the product manufactured and sold is not ready to eat but can be said to be ready to cook . 5. The appellant, before the GAAR also submitted the details of raw materials used in various products viz: Sl. No. Product Ingredients 1 Gota Flour (in powder form) Chick Peas Flour, Sugar, Wheat Flour, Iodised Salt, Red Chilli, Garam Masala Raising Agent [(INS 500(ii)], Black Pepper, Coriander, Ajwain, Fennel, Acidity Regulator (INS 330). Chutney Powder: Sugar, Dry Mango Powder, Salt, Red Chilli, Cumin, Coriander, Acidity Regulator (INS 330). 2 Khaman Flour (in powder form)-Bengal Gram Dal, Sugar, Iodised Salt, Raising Agent [(INS 500(ii)], Acidity Regulator (INS 330). 3 Dalwada Flour (in powder form)-Green Gram Dal, Iodised Salt, Raising Agent [(INS 500(ii)], Acidity Regulator (INS 330). 4 Dahi-wada Flour (in powder form)-Black Gram Dal, Green Gram Dal, Iodised Salt, Raising Agent [(INS 500(ii)], Acidity Regulator (INS 330). 5 Dhokla Flour (in powder form)-Rice, Bengal Gram Dal, Black Gram Dal, Iodised Salt, Raising Agent [(INS 500(ii)], Acidity Regulator (INS 330). 6 Idli Flour (in powder form)-Rice, Black Gram Dal, Iodised Salt, Raising Agent [(INS 500(ii)], Acidity Regulator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before the GAAR, as under: (i) Product manufactured and supplied by them are merely flour of farsan dishes and not ready to eat food preparation; (ii) The Flour of the farsan such as Khaman, Dahi Wada, Gota, Dal Wada, Dhokla etc. should not be taxable at a rate higher than the rate at which, ready to cat prepared farsan is taxable; (iii) Farsan /preparations of products under consideration when served ready to cat in market/restaurants/food shops, is taxed @ of 5% (2.5%+2.5%); (iv) Logically, it is consumed by the customer due to various reasons such as; good quality of raw materials supplied; hygienic preparation as compared to hotels, restaurants or food shops etc.; convenience to prepare fresh and eat at home at any time by normal cooking process; taste of our products remains same in all services. (v) Products under consideration are similar to Sattu or Chhatua which is chargeable @ of 5% (2.5%+2.5%). Sattu or Chhatua made of flour mixed with spices, pulses etc. is a similar product and therefore their products also needs to be classified under the heading 1106. (vi) Products under consideration are known as flour of farsan/namkeen in common parlance. Therefore, considering i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the appellant contain spices and other ingredients in different proportions, which are not mentioned in the chapter heading 1106 or the relevant explanatory notes of HSN, the said products are not covered under chapter heading 1106. that CBIC Circular No. 80/54/2018-GST dated 31.12.2018 is not applicable in present case as the products of the appellant are different from Satlu and have spices and ingredients in varying proportions and are in the nature of instant mix; that GAAR is not inclined to admit CTH 1106 for said products; that chapter heading 2106 is not confined to processed or semi processed food, cooked or semi cooked food, preserved food and ready to eat food. In fact, any product which is a food preparation and which is not elsewhere specified or included in the Customs Tariff Act, 1975, gets covered under HSN 2106; that the application mentions that products are commercially known as Instant Mix Flour; that there is no merit to treat the subject goods as flour. As these products are not specifically mentioned under any specific tariff item of HSN 2106, the products merit classification under the residual entry other at HSN 21069099; that the 7 products of Mix f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our and applicable rate of GST on these products. As is already mentioned supra, GAAR has held that the aforementioned products are to be classified under HSN 2106 90 (Other) attracting 18% GST (9% CGST and 9% SGST) in terms of SI. No. 23 of Schedule-III of notification No. 1/2017-CT (Rate) dated 28.6.2017. 19. The appellant s primary claim is that their products are in the nature of flours and not instant mix and that it should fall under HS code 1102. On going through para 2 (A) of the explanatory notes of HSN for Chapter 11, it is observed that the products from the milling of the cereals listed in the table (wheat and rye, barley, oats, maize and grain, sorghum, rice, buckwheat) fall in this chapter if they satisfy some characteristics. Further, in terms of para 2(B) of the explanatory notes of HSN for Chapter 11, products falling in this Chapter under the provisions of para 2 (A) shall be classified in Heading 11.01 or 11.02, if the percentage passing through a woven metal wire cloth sieve with the aperture of 315 micro meters (microns) / 500 micro meters (microns) is not less, by weight than that shown against the cereal concerned, otherwise, they fall in heading 11.03 or 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eguminous vegetables of heading 0743 1106.20 - Of sago or of roots or tubers of heading 0744 1106.30 - Of the products of Chapter 8 (A) Flour, meal and powder of the dried leguminous vegetables of heading 0743. This heading includes the flour, meal and powder made from peas, beans or lentils; they are mainly used for prepared soups or purges. The heading does not cover : (a) Non-defatted soya flour (heading 12.08). (b) Locust bean flour (heading 12.12), (c) Soups and broths (whether in liquid, solid or powder form), with a basis of vegetable flours or meals (heading 21.04). (B) Flour, meal and powder of sago or of roots or tubers of heading 0744. These products are obtained by the simple grinding or grating of the pith of the sago palm or of the dried roots of the manioc, etc. Some of these products are often subjected to heat treatment in the course of manufacture to eliminate toxic substances; this treatment may entail pregelatinisation of the starch. The heading does not cover starches obtained from these sources (it should be noted that the starch obtained from sago is sometimes called sago flour ). These starches fall in heading 11.08 and can be distinguished from the flours o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Headings 11.03 and 11.04. 21. The appellant has further stated that their product would fall under HSN code 1106. The explanatory note to chapter 1106 is reproduced supra. However, it would be prudent to reproduce the chapter heading 1106 of Customs Tariff for case of understanding viz Chapter Heading 1106 as per Customs Tariff: 1106 FLOUR, MEAL AND POWDER OF THE DRIED LEGUMINOUS VEGETABLES OF HEADING 0713, OF SAGO OR OF ROOTS OR TUBERS OF HEADING 0714 OR OF THE PRODUCTS OF CHAPTER 8: 1106 10 00- Of the dried leguminous vegetables of heading 0713 1106 20- Of sago or of roots or tubers of heading 0714: 1106 20 10 --- Of sago 1106 20 20 --- Of manioc (cassava) 1106 20 90 --- Of other roots and tubers 1106 30 - Of the products of Chapter 8: 1106 30 10 --- Of tamarind 1106 30 20 --- Of singoda 1106 30 30 --- Mango flour 1106 30 90 --- Other Now, as is evident, Chapter Heading 11.06 covers Flour, Meal and Powder of the dried leguminous vegetables of Heading 0713, of sago or of roots or tubers of Heading 0714 or of the products of Chapter 8 . As per Rule 1 of the General Rules for the Interpretation of Customs Tariff Act, 1975, for legal purposes, classification shall be determined accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sattu in Hindi Belt). 3.2 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 (S. No. 78 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017) and if branded and packed it attracts 5% GST (S. No. 59 of schedule I of notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017). The CBIC has clarified in the aforesaid circular that the flour of ground pulses and cereals, improved by the addition of very small amounts of additives continues to be classified under HSN Code 1106. However, the said clarification is not applicable in the present case as the products being supplied by the appellant contain spices and other ingredients, which is not the case with the Chhatua or Sattu . 24. In view of the foregoing, we hold that none of the products of the appellant merit classification under Chapter 11 of the Customs Tariff Act, 1975 and specifically under Chapter Headings 11.01, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i flour (vii) Dosa flour), for human consumption. Further, these products are preparations for use, either directly or after processing, such as cooking, dissolving or boiling in water, milk, etc., for human consumption. Thus, we are of the view that all the aforementioned 7 products of Mix flour / Instant Mix flour are appropriately classifiable under 21.06 of the HSN. As these products are not specifically mentioned under any specific Tariff Item of Chapter Heading 2106 of the CTA, 1975, these products are classifiable under the residuary entry i.e. Tariff Item 2106 90 99 as Other . 27. The appellant has further also submitted that the Mix Flour / Instant Mix Flour is not a ready-to-eat food. In this regard, we observe that Chapter Heading 21.06 and specifically Tariff Item 2106 90 99 is not confined to processed or semi processed food, cooked or semi cooked food, preserved food and ready to eat food. In fact, any product which is a food preparation and which is not elsewhere specified or included in the CTA. 1975, gets covered under Chapter Heading 2106 of the CTA, 1975. Therefore, merely because the end consumer of the Instant Mix Flour is required to follow certain food prepar ..... 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