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2019 (8) TMI 1805 - APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANAClassification of goods - pizza topping - classifiable under Heading 0406 as claimed by the appellant or classifiable under Heading 2106 as determined by the Authority for Advance Ruling, Haryana? - applicability of S. No. 13 of Schedule-1 of Notification No 1/2017-Integrated Tax (Rate) dated June 28, 2017 - HELD THAT:- The impugned item contains “vegetable fat” as a substantial portion being 22% of the ingredients, apart from mozzarella cheese which is only 14.5% of the combination of ingredients. Thus, the impugned item mainly comprises of “vegetable fat”. It is apparent from the above definition of “process cheese” as appearing in the HSN explanatory notes, that “vegetable fat” is not a prescribed ingredient for process cheese, hence, the presence of “vegetable fat” in substantial quantity, results the impugned item do not qualify to be categorized as “Process cheese” or a type of cheese. The appellant relied upon the decision of Appellate Authority for Advance Ruling, Uttar Pradesh in the case of IN RE : SAVENCIA FROMAGE AND DAIRY PVT. LTD. [2019 (4) TMI 1545 - APPELLATE AUTHORITY FOR ADVANCE RULING, UTTAR PRADESH]. In this case Appellate Authority for Advance Ruling, Uttar Pradesh has held that the product “Breaded Cheese” is classifiable under Heading 0406 - On going through the said case, it is found that cheese form the most important constituent (55% of total volume). Since the product in question in this case consisting predominantly cheese, hence the Authority has correctly classified the product under Heading 0406. However, in the present case, cheese is not the predominant constituent. Hence the case relied upon by the appellant is not at all applicable in the case. Thus, the impugned item “pizza topping”, is not covered under the Chapter Heading 0406 of the 1st schedule to the Customs Tariff Act, 1975, in the light of HSN explanatory notes, as discussed in preceding paras and accordingly, not covered by serial number S.No 13 of schedule II to Notification No 1/2017-Integrated Tax (Rate), Notification No.l/2017-Central Tax (Rate) and Notification no.35/ST-2 and chargeable to GST @ 12%. Applicability of Chapter 2106 - HELD THAT:- Chapter 21 essentially covers ‘Miscellaneous Edible Products’. Obviously, the term ‘Miscellaneous’ indicates that this particular chapter would contain all such edible products which are not specifically covered elsewhere under the Tariff. The Chapter Headings further describes various edible preparations such as extracts of Coffee, tea, Yeast, Soups, broths, Sauces etc. under Heading 2101 to 2105. Further as is the convention, Heading 2106 has been given to include all those items which are not elsewhere specified. Furthermore, 2106 further sub-divides and classifies various edible items like Protein Concentrates, Pan Masala, Sharbats, Supari, Custard Powder etc. under Sub-headings 2106 10 00 to 2106 90 80 and to conclude there is a residual entry as ‘Others’ under 2106 90 99. The product in question i.e. ‘‘Pizza Topping’ is a product made out of mozzarella cheese, vegetable oil and milk solids as main ingredients with premixes of emulsifiers and stabilizers. The mozzarella cheese is blended with other ingredients and heated upto a required degree. After heating, the materiel is transferred to a mould of requisite capacity for packing the product into pouches containing smaller quantities (1 kg and 200 grm). These pouches are sealed and packed in an outer carton. The product cannot be termed as ‘Processed Cheese’ as already discussed above. However, there is no doubt that being edible preparation for human consumption, it would merit classification under Chapter 21 i.e. ‘Miscellaneous Edible Preparations’ - the impugned product viz. “Pizza Topping’ would merit classification as ‘Food preparations not elsewhere specified or included’ under Chapter Heading 2106 of the schedule to the Customs Tariff Act, 1975, and chargeable to GST as applicable. Thus, the impugned goods shall be aptly classifiable under Chapter Head 2106 of the schedule to the Custom Tariff Act, 1975 as ‘Food preparations not elsewhere specified or included’ and chargeable to IGST @ 18%.
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