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2019 (8) TMI 1804 - APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANAClassification of goods - Cooking Cream - covered under chapter heading 1517 and chargeable to 5% IGST under S.No.89 of Schedule-I to Notification No. 1/2017-Integrated Tax or classifiable under Heading 2106? - HELD THAT:- For any given product, the name, character and use are three important ingredients which decide the classification of any given product. The Appellant contended that impugned goods is similar to margarine insofar as it is a preparation of vegetable oil in the nature of an emulsion of water-in-oil type and it resembles a regular cream which, like butter, is a dairy product. Similar to margarine which imitated butter by using vegetable fat instead of dairy fat, the impugned product imitates cream by using vegetable fat instead of dairy fat. In their defence appellant relied upon the decision in the case of ALUVA SUGAR AGENCY VERSUS STATE OF KERALA [2011 (9) TMI 11 - SUPREME COURT] - in the case of Aluva Sugar Agency, Hon'ble Supreme Court of India has held that "Margarine - Made only from vegetable oils - Used exclusively as raw-material by bakeries and confectionaries makers - Though margarine was not consumed directly and not used for normal cooking as other oils like coconut, sunflower, etc., fact that it was used for preparing bakery items consumed by human beings made it edible - Having around 80% fat, and being in nature of oil, it has to be considered as edible oil. It may be seen that butter consists milk fat contents of 80% or more but not more than 95% by weight. In the case of Aluva Sugar Agency also the fat contents of Margarine is around 80% and thus the same is used as substitute of butter. However, in the case before us the fat contents is only 26%. Thus the product 'Cooking Cream' cannot be said to be a substitute or imitation of butter. Thus Cooking Cream is not similar to Margarine and hence the case law relied upon by the appellant in Aluva Sugar Agency holds no water. The appellant further relied upon the decision of Kerala High Court in the case of M/S. PARISONS FOODS PVT. LTD. VERSUS JOINT COMMISSIONER OF COMMERCIAL TAXES DEPARTMENT OF COMMERCIAL TAXES, THIRUVANANTHAPURAM, KERALA [2018 (1) TMI 1195 - KERALA HIGH COURT] where various hydrogenated vegetable oils (vanaspati) and liquid refined vegetable oils were blended together in a blending vessel; and all the fractions of oil were properly melted and additives (like Sesame Oil, Vitamin A and Vitamin D) were added to the mixture. The mixture so formed was kept under agitation for 45 minutes to get a homogenous mass. The vanaspati was passed through Rotators and Crystallizers which churned the product from 45°C to 20°C - however, in the present case it is found that appellant is using Sugar as an ingredient which does not found place in the list of ingredients described in HSN Explanatory Notes of Heading 1517. Thus, the aforesaid case law of Parisons Foods Pvt Ltd is not applicable to the instant case. Moreover, the case of Parisons Foods Pvt Ltd relied upon by the appellant has not attained the finality and pending with the Apex Court. Thus, the product 'Cooking Delite' is not classifiable under Heading 1517 of Customs Tariff Act. If the impugned goods do not qualify to be classified under Heading 1517 of Customs Tariff Act, as claimed by the appellant then which is the appropriate Chapter Heading wherein the product in question is classifiable? - 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. In the instant case, the impugned item is mixture of vegetable oil and other food stuffs. After the manufacturing process, as detailed in the appeal, it is observed that individual identity of all the mixtures is lost and what, emerges is totally a different item, a new product having different name, character and use. Thus, cooking cream cannot be said to be merely a mixture of vegetable oil with other ingredient, but a totally new product having different name character and use - it does not merit classification under chapter heading 1517, rather merits classification under chapter heading 21069099, as "preparations not elsewhere specified or included" as it does not remain fraction of palm oil. The impugned item merits classification under chapter heading 2106 of the schedule to the Customs Tariff Act, 1975 and chargeable to GST accordingly. It is also found that the Advance Ruling Authority has gone through the matter in detailed way and passed a well reasoned speaking order and hence, there is no reason to interfere with the order. Appeal dismissed.
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