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2021 (6) TMI 1107 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARATClassification of goods - PAPAD of different shapes and sizes manufactured/ supplied by the appellant - tariff heading/HSN Code - Applicable rate of GST - HELD THAT:- Though, traditionally Papad has been prepared manually, in round shape. However, when ingredients and process are similar in case of PAPAD and impugned product, then the product in question is nothing but a kind of PAPAD irrespective of their shape and sizes - As submitted by the appellant, when the consumer desires to eat the said products of the appellant, the said products are required to be fried or roasted before consumption. Thus, these products are not meant to be eaten without frying or roasting - The products under consideration become crispy when these products are fried or roasted. The products of the appellant has found its use as an alternative to regular round shaped Papad or as an additional variety of Papad in the Indian meal, especially the meals served during the community functions. The caterers, who prepare the meals for the community functions, as well as the people in general, consider such products as a different type or variety of Papad only - applicant’s products of different shapes and sizes of papad, whose pictures are reproduced, are nothing but Papad, classifiable under Tariff Item 1905 90 40 of the Customs Tariff Act, 1975. Would it be judicious to stick that the product which are having Round shape, manufactured by using ingredient of cereal flour only are PAPAD and the products having the same characteristic and uses but shape and size is different cannot be termed as “PAPAD”? - HELD THAT:- Reliance can be placed in the case of M/S. SHIV SHAKTI GOLD FINGER VERSUS ASSTT. COMMISSIONER, COMMERCIAL TAXES, JAIPUR [1996 (5) TMI 419 - SUPREME COURT] where it was held that irrespective of the shape of PAPAD and irrespective of ingredients used, the PAPAD still remains PAPAD - the decision is squarely applicable in the instant case as such the impugned product having different shapes and size PAPAD as compared to round shape Papad however are similar to Papad in respect of the ingredient, manufacturing process and use. Further, in entry No. 96 of Notification No. 02/2017-CT (Rate) dated 28.06.2017, the description of the product is “PAPAD by whatever name called”. To understand the term “whatever name called” the principle of “Noscitur a sociis” is to be applied. As per the said principle, the meaning of an unclear word or phrase must be determined by the words that surround it. In other terms, the meaning of a word must be judged by the company that it keeps. Therefore, in this entry, only a product called by name of PAPAD would not be covered but all types of product which are similar to PAPAD in respect of ingredient, manufacturing process, use and common parlance would be covered irrespective of their shape and size and even name. As such, the appellant’s product is similar to the traditional round shaped Papad in all respect - the impugned product i.e. different shapes and sizes of papad is eligible to be covered under entry No. 96 of Notification No. 02/2017-CT (Rate) dated 28.06.2017. The rule of interpretation for classification is that when a product is eligible to be classified under specific entry then classification under general entry should not be preferred. It is found that in the case at hand, the product “different shapes and sizes Papad” is “Papad” of different shapes and size and find specific entry at CTH No. 19059040, therefore as per rule of interpretation, the product is to be classified under CTH No. 19059040 only and not under CTH No. 21069099 of the Customs Tariff Act, 1975 as classified by the GAAR. The product ‘different shapes and sizes Papad’ involved in the present case merit classification under Tariff heading No. 19059040 of the Customs Tariff Act, 1975. It is already held that the product in question is classifiable under CTH No. 1905 of the Customs Tariff Act, 1975, the said CTH No. 1905 is covered under entry No. 96 of Notification No. 02/20178-CT (Rate) dated 28.06.2017 and accordingly chargeable to NIL rate of Goods and Services Tax.
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