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2018 (12) TMI 1865 - AAR - GSTClassification of goods - Breaded Cheese - classifiable as 'cheese' under Heading 0406 or otherwise? - rate of GST - Applicability of S. No. 13 of the Schedule-II appended to Notification No. 1/2017-Central Tax (Rate), dated June 28, 2017. Whether the subject goods retain the characteristics of cheese even after being coated with batter and bread crumbs and pre-cooked partially, as is done in the case of the subject goods? HELD THAT:- It is found from the manufacturing process described as well as from label and packaging of goods that these are not cheese per se but have been converted into an article of cheese having the identity and characteristics of snack foods. Here it will be pertinent to mention that a number of similar items are available in the market which are normally based on flour, potatoes, soybeans, pulses etc. but all such items are not bought and sold as the ingredients of which they are predominantly composed (Potatoes, Flour, etc.) but as distinct snack food articles. Similar is the case of subject goods as after undergoing the manufacturing process and packaging, they lose the identity of cheese and acquire that of a snack food article made from cheese. It is found from the label/ packaging of the goods that the percentage of cheese is not more than 55%, which indicates that though cheese is the major component of the goods but it cannot be said to be present in such quantity that it predominates or overwhelms the presence of other ingredients. It is observed that the percentage of other ingredients is as high as 45%, which should prevent the goods from retaining the character of cheese. Therefore acceptance of these goods as cheese would not be the correct position. Since, the cheese balls themselves are not specified in the tariff and they are admittedly a food preparation, hence they are classifiable as 'Food preparations not elsewhere specified or included' under Heading No. 2106.
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