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TMI Blog2024 (6) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable. Thus, the product is classifiable under chapter 12 of the Customs Tariff Heading, specifically CTH 12074090. The applicant has heavily relied upon circular no. 197/31/96-CX dated 15.4.1996 and three case laws. The reliance of the applicant to the said circular and the case law is not tenable owing to the fact that the circular is in respect of coriander seeds and the circular concludes that the same is covered under chapter 9, specifically 09.09 of HSN. Rate of GST - HELD THAT:- It is found that both the products classified under tariff item 12074090 and would be leviable to GST @ 2.5% CGST and 2.5% SGST in terms of entry no. 70 of schedule to notification No. 1/2017-CT (Rate). - MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER Present for the Applicant : Shri Nitesh Jain, CA, Shri Krupen Patel, Shri Jay Dalwadi, Shri Dhrumin Patel and Shri Harsh Shah Brief facts: M/s. Bhagat Dhanadal Corporation (for short- applicant ), 1, Bhagat Estate, Nr. Anupam Cinema, Khokhra, Ahmedabad, Gujarat-380021, is a partnership firm their GSTIN number is 24AA1FB8411EIZU. 2. The applicant deals in various types of seed mix, two of which are Mix mukhwas and Roasted til ajwain , which they clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogether in water to create a solution, which is further mixed with sesamum seed. This process is named salting. After salting, the mixture is rested overnight for the seeds to absorb the salty mixture. Step 4: After the sesamum seeds have absorbed the salt overnight, again the sesame seeds are machine cleaned to remove additional salt. Step 5: Sesamum seeds are then transferred to machine for roasting. While the sesamum seeds are being roasted, turmeric powder *( 0.05%) is applied to them. Once roasting is done, the roasted sesamum seeds are further cleaned to remove additional turmeric powder and any broken particles. Later, the roasted sesamum seeds are rested in a container to remove any excess heat generated in the process. Step 6: Ajwain seeds are then roasted separately and mixed with roasted sesamum seeds in desired proportion to complete the process, Step 7: The product is then packed in pouches 150g each for commercial sale Notes: Proportion of the specific product used in making of the final product. There are no artificial flavors or sweetener used in the said process Ingredient composition of Product: Roasted til and ajwain (Table-II) Ingredient Name % Sesamum Seeds (Ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, both the products should be classified under the subheading TI 12074090 as Other oil seeds and oleaginous fruits, whether or not broken sesamum seeds: Other ; Roasted Til and Ajwain contain sesamum seeds as their main component. It contains 97% sesame seeds of the total mixture of seeds. Hence, the product should be classified under tariff item 12074090 as Other oil seeds and oleaginous fruits, whether or not broken sesamum seeds: Other according to the GRI. a heading that provides a specific description is preferred over the general description; that specific tariff item has been provided for sesamum seeds; that both products should be classified under the said specific heading; that even if rule 3 (b) is taken, classification would be that of sesamum seeds as it is the main ingredient and both the products are named, known and consumed due this seed only; the rate of GST would be as per entry at Sr. No. 70 of Schedule-I of notification No. 1/2017-CT(R) dated 28.06.2017. 5. In view of the foregoing, the applicant has raised the following question for advance ruling viz 1. Whether the Products Mix Mukhwas and Roasted Til Ajwain prepared and sold are covered by HSN code 12074090? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as per the Supreme Court website, Revenue s appeal was dismissed as withdrawn on account of low monetary grounds. Discussion and findings 8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts the applicant s submission/interpretation of law in respect of question on which the advance ruling is sought. 10. The relevant extracts of the Customs Tariff Act, 1975, HSN, circular is reproduced for ease of reference viz THE CUSTOMS TARIFF ACT, 1975 CHAPTER 12 Oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder NOTES : 1. Heading 1207 applies, inter alia, to palm nuts and kernels, cotton seeds, castor oil seeds, sesamum seeds, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 1207 99 10 --- Ajams kg. 30% 20% 1207 99 20 --- Mango kernel kg. 30% 20% 1207 99 30 --- Niger seed kg. 30% 20% 1207 99 40 --- Kokam kg. 30% 20% 1207 99 90 --- Other kg. 30% 20% 11. The primary contention of the applicant is that sesamum seeds [Til] is the main seed constituent in both the products in respect of which ruling is sought; that sesamum seeds are classifiable under chapter 12 of CTA 75; that the other seeds in the product are classified under chapter 9, ibid; that heat treatment done in respect of the product is only for preservation and that the heating process does not convert it into any specific use; that they have chosen to treat them further by way of flavoring use them in the said two products; that in terms of 3 (b) of GRI, mixtures will be classified as per the dominating product which gives the essential character which in their case is sesamum seeds; that they are of the opinion that both the products falls under 12074090 is leviable to tax under 5% GST. 12. As far as the first product Mix Mukhwas is concerned, the composition and the process are enumerated in the paragraphs above; that the product mainly comprises of sesamum seeds [60%] and coriander seeds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16. The composition of both the products, in respect of which ruling is sought, clearly show that these products, mainly comprise of sesamum seeds i.e. 60% in respect of the first product and 97% in respect of the second product. 17. Now, we find that as far as sesamum seeds are concerned, they are classifiable under Chapter 12. Chapter 12 bears the heading Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder . While item 1201 deals with soya beans, whether broken or not, item 12.02, deals with ground-nuts, item 1203 deals with copra item 1204 with linseed, whether broken of not, item 12.05 deals with rape-seeds or colza-seeds, whether or not broken, item 1206 deals with sunflower seeds, whether or not broken and item 1207.00 to item 1209.29 deals with different types of seeds. Heading 1207, applies inter alia to sesamum seeds. HSN explanatory notes further states that headings 12.01 to 12.07 cover seeds fruits of a kind used for extraction, whether they are presented for that purpose, for sowing or for other purpose; that the heading does not cover products of heading 08.01 or 08.02, olives, certain seeds and fru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the products of headings 09.04 to 09.10 are to be classified as follows : (a) Mixtures of two or more of the products of the same heading are to be classified in that heading; (b) Mixtures of two or more of the products of different headings are to be classified in heading 09.10. The addition of other substances to the products of headings 09.04 to 09.10 (or to the mixtures referred to in paragraph (a) or (b) above) shall not affect their classification provided the resulting mixtures retain the essential character of the goods of those headings. Otherwise such mixtures are not classified in this Chapter, those constituting mixed condiments or mixed seasonings are classified in heading 21.03. Such a note is absent as far as chapter 12, is concerned. 23. The chapter note referred in chapter 21, is as under Notes. 1.- This Chapter does not cover: (a) Mixed vegetables of heading 07.12; (b) Roasted coffee substitutes containing coffee in any proportion (heading 09.01); (c) Flavoured tea (heading 09.02); (d) Spices or other products of headings 09.04 to 09.10; The exclusion in 1 (d) talks only of chapter 9 and not of 12. Thus the circular relied upon by the applicant is not a tenable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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