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TMI Blog2025 (4) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (hereinafter referred to as the 'Act') are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. V K Samy Biscuits & Confectioneries, located at 3rd floor, 298/1A, VKS Building, Peraiyur Road, Usilampatti, Madurai - 625532 (hereinafter called as 'the Applicant') are registered under the GST Acts with GSTIN 33AADFV6880G1ZZ. The applicant is engaged in the manufacture of Maida Pappad'. The production process involves using Maida, small quantities of sugar, and oil as primary ingredients. These ingredients are mixed to form a sheet of dough, which is subsequently cut into the required shapes. The formed dough is then dried in the oven, and the finished product is packaged in 10 Kg packs. The product in this form is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated that no proceeding is pending in respect of the applicant. Further, the State Tax Officer, Madurai Rural West Assessment Circle vide their letter dated 10.07.2024 stated that on analysing the issue in the background of various advance rulings along with the impugned Circular No. 200/12/2023-GST dated 01.08.2023, the product of the applicant will not come under the classification of Papad' but will fall under the category of un-fried or uncooked snack pellets, since it is being processed through Extrusion and does not meet the characteristics of Maida Papad, and in their view, the applicable rate of tax for the above product of the applicant would be 5%. Regarding the pending proceedings, they stated that a Show Cause Notice (IIT) is pending to be concluded by the Deputy State Officer-1 on a different issue relating to non-reversal of ITC on exempted supplies. 3.3 The Central Authority, i.e., Madurai Commissionerate, vide their letter dated 08.07.2024 has stated that there are no proceedings pending on the issue raised by the applicant. PERSONAL HEARING 4.1 Shri R. Vaidhyanathan, Chartered Accountant appeared for the personal hearing on 28.01.2025 as the authorized repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose manufacturing purpose is sheeting the dough and cutting the sheet with knife?" We observe that the aforesaid question gets covered under 97(2)(a) of the CGST Act, 2017, i.e., "classification of any goods or services or both", and accordingly, the said application is liable for admission. 5.3 On perusal of the submissions made, documents produced, and photographs of the manufacturing process, furnished by the applicant, it is seen that the applicant claims to have been engaged in the manufacture of Maida Pappad' and from the sample copy of the Invoice No.467-24-25 dated 18.12.2024, the same is seen to have been classified under the HSN 1905 90 40, wherein GST at the rate of 5% (CGST - 2.5% and SGST - 2.5%) is seen to have been charged. 5.4 To begin with, we take note of the fact that Pappad' is exempt from GST by virtue of entry No.96 of Notification No.2/2017-CT (Rate) dated 28.06.2017, which is reproduced below :- S.No Chapter heading Description of Goods 96. 1905 Pappad, by whatever name it is known, except when served for consumption. It therefore becomes clear that Pappad', by whatever name it is known, is exempt from payment of GST except when served ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... continue to attract GST at 18% (Schedule III). At this juncture, we are of the opinion that two key aspects merit consideration and analysis in the instant case, viz., (i) Whether the product of the applicant is a Pappad'?, and (ii) Whether the manufacturing process involved in the instant case involves the process of Extrusion'?. 5.6.1 The word Papad' or Pappad' is not defined or clarified under the Customs Tariff Act or under the GST Acts. It is a well settled principle of interpretation, that the word not defined in the statute should be construed in that sense/meaning as understood in common language, and in which the people conversant with the subject matter would attribute to it characteristics. Accordingly, Papad', is commonly understood as a thin, crisp Indian food item that is made from ground lentils, and which is eaten after being roasted or deep fried in oil. 5.6.2 Further, the main ingredient of Papad is batter of pulses/lentils, i.e., Urad dal, Moong dal, etc. However, in the instant case, Maida' is the main ingredient as admitted by the applicant themselves, and the final product, viz., Maida Papad' looks like a biscuit in the shape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Black's - The process of shaping material by forcing it through a die. (iii) Merriam Webster's - A process that is used to create object of a fixed cross-sectional profile by pushing the material through a specially designed opening. (iv) Cambridge - The action of making something by forcing it through a specially shaped opening, often used in manufacturing process. The applicant has further stated the process involved in their case is 'Sheeting and Shaping Process', whereby the process involves creating a continuous sheet of dough, which is then cut, stamped, or molded into specific shapes, and which is commonly used for products like biscuits, cookies, crackers, and certain snack foods. 5.7.2 The images as produced by the applicant in the additional submissions made are displayed below, for a better understanding of the process involved, i.e., The above referred images convey the fact that when the sheet of dough is passed or pushed through the, two rollers, specific shapes are formed depending upon the blades/designs engraved or 'attached to either of the rollers. Accordingly, the plain sheet of dough when passed through this opening, comes out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect from 27.07.2023, supply of un-cooked/un-fried extruded snack pellets, by whatever name called, falling under CTH 1905 would attract GST at the rate of 5%, by way of insertion of entry S.No. 99B of Schedule I to Notification No. 01/2017-CT (Rate) dated 28.07.2017. The said entry reads as, (1) (2) (3) "99B. 1905 Un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion. It is seen from the said entry that 'Snack Pellets', by whatever name called, which are un-fried or un-cooked, and which are manufactured through the process of extrusion, shall fall under this category. A "snack pellet" as it is known in common parlance, is a small, semi-finished, compressed piece of food that can be further processed into a variety of snack products like chips, puffs, or crackers through frying, baking, or extrusion. We are therefore of the opinion that the impugned product of the applicant ideally fall under the category of snack pellets, which are un-fried or un-cooked as admitted by the applicant, and that the same cannot be considered as a Papad' at all. Further, as the product is obtained through the process of 'Extrusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, it is brought to the notice of the applicant that depending upon the nature of presentation of the facts of the case, the nature of product, the process involved, etc., which differs from one case to another, the advance rulings are always pronounced keeping in mind, the facts and circumstances of the respective cases. Further, it may be noted that Section 95 (a) of the CGST Act, 2017, which defines 'advance ruling', reads as under:- (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; whereby, it becomes clear that 'advance rulings' are applicant-specific and it applies only to the applicants concerned, and are not to be applied in general. Accordingly, the ruling referred by the applicant do not come to their aid. 6. In view of the detailed discussions supra, we rule as under:- RULING The product, 'Maida Pappad' as referred to by the applicant in the instant case, are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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