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2023 (9) TMI 764 - AAR - GSTClassification of goods - Tapioca flour obtained by crushing the dried roots, and remnants of tapioca roots/tubers - entry No. 78 and Tariff item 1106 of Part A of Exempted goods, and tariff item 1106 in SI. No. 59 of Part C in Schedule I of the said Act - such trader/ dealer is required to be registered or not - HELD THAT:- The tariff heading 1106 includes Flour, meal and powder of the dried leguminous vegetables of heading 0713 and of sago or of roots or tubers of heading 0714. Therefore, it is clear that this HSN is related to flour directly prepared by grinding dried leguminous vegetables, tubers without involving any other processing. The impugned product is prepared by drying and grinding the wet residue which is nothing but the fibrous substances retained in the sieve, while extracting/filtering wet milk from grinded tapioca roots. Hence, it is understood that, segregating fibre/residue is an integral part of the starch manufacturing process. Though, the applicant and other dealers in similar trade line described it as tapioca flour, the commodity dealt with by the applicant more clearly fits into the specific description ‘Residues of starch manufacturing and similar residues, (HSN 2303.10) - as per the dealers contention also this product is not fit for human consumption and it is actually used as animal feed and in manufacturing of adhesives. But, the goods classified under tariff head 1106 are meant for human consumption. The product dealt with by the applicant is classifiable under the tariff head 2303.10, Residues of starch manufacturing and similar residues, taxable @ 5%. Requirement of registration - HELD THAT:- In terms of Section 22 of the CGST Act, read with relevant provisions of SGST Act, the applicant is liable to be registered, if his aggregate turnover in a financial year exceeds the prescribed turnover under GST Law.
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