Home Case Index All Cases GST GST + AAAR GST - 2020 (6) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 644 - AAAR - GSTClassification of goods - Fortified Rice Kernels (FRK) - whether classifiable under HSN 19049090 or not - rate of tax - Challenge to AAR decision - HELD THAT:- From the manufacturing process, it is noted that to manufacture FRK, the natural rice has to be converted into Rice Flour. The moment the Rice is converted into Flour, essential characteristics of rice is changed and no grain remain present in the product and therefore, the same cannot be classified in any of the heading of Chapter 10 in terms of Chapter Note 1(A) ibid. Further, consequent upon changing from rice grains to rice flour and then preparation of any product out of rice flour, whether similar to Rice or not in shape, the resultant product does not fail in the inclusive part of the Chapter note 1(B) of Chapter 10, which specifically mentions Rice (i) Husked, (ii) milled, (iii) polished, (iv) glazed, (v) parboiled or (vi) broken as in all such form of Rice, natural grains are present in the product - thus, FRK is out of the ambit of Chapter 10. The appellant supplied the FRK to various millers/suppliers with instruction “this product should be first mixed (blended) with traditional rice in ratio of 1:100 and then the mixed rice is cooked and consumed.” This is an admission of fact by the appellant that FRK is a product different from the traditional rice and to be used for blending in traditional rice - the FRK manufactured by the appellant do not have essential character of natural Rice and also does not merit classification under Chapter 10 in terms of Chapter Note 1 (A) of the said Chapter. It is appropriately classifiable under the sub-heading of Chapter 19 i.e. under Chapter sub-heading 19049000. Appeal disposed off.
|