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2018 (10) TMI 1312 - AAR - GSTRate of GST - Classification of the commodity - commodity 'Ada' - whether the commodity "Ada" should be classified under the HSN Code 1902 along with "Seviyan (Vemicelli)" attracting GST at the rate of 5% or should be classified under residual entry at Sl No. 453 of the Third Schedule of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 18% GST? Held that:- The applicable rule in this case is Rule 4 and as per the same, 'Ada' is to be classified under the heading appropriate to the goods to which it is most similar in character. The product, "Ada", in sum and substance, is something akin, i.e., similar in character to "Vermicelli". Both are made from 'maida or rice flour' or 'maida and rice flour' and are manufactured through an identical process and "ada" is used for giving richness to certain regional varieties of payasams called "Ada Pradhaman" and "Palada Pradhaman", which are popular in Kerala and certain parts of Tamil Nadu. There is indeed nothing to differentiate "ada" from "vermicelli" except for the dies that are used in the manufacturing process which gives it a different shape. Applying Rule 4 of the General Rules of Interpretation of the First Schedule to the Customs Tariff Act, 1975 and the principles of classification of goods as settled by the various judgments of the Hon'ble Apex Court, "Ada" merits classification under HSN 1902 of the 1st Schedule [Sl No. 97 - Seviyan (Vermicelli)] of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 5% GST. Ruling:- "Ada" is rightly classifiable under HSN 1902 of the 1st Schedule [Sl No. 97-Seviyan (Vermicelli)] of Notification No. 01/2017-CentraI Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 dated 30.06.2017 attracting 5% GST.
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