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2019 (3) TMI 926 - AAR - GSTClassification of goods - rate of tax - vadams made of maida - Held that:- The product is made out of dough of maida as main ingredient along with preservatives. The mixed dough is cut into desirable shapes and dried in oven. The Applicant uses machinery for making the same. The products are sold by the Applicant in retail packing which have s shelf life of around 6 months as they have added preservatives are not fully cooked and are not ready to eat. On purchase byte consumer, they are to be fried in edible oil before consumption. It is seen from the samples and photographs produced during the hearing, that the items are indeed edible only after frying in oil which is not done by the Applicant but those who purchase it. Whether the product in question is ‘Papad’ falling under Ch. 1905 or a ‘namkeen’ falling under Ch. 2106? - Held that:- Chapter 21 only covers edible preparations and “Namkeens” which are ready to eat are covered under the same. In the instant case, Maida vadam/papads are made of Maida, Sugar and Vanaspathi , Edible Salt, preservatives and dried in oven. They become edible only after frying in oil which is done by the ultimate consumer and the Applicant only supplies the dried/ semi - cooked version of it. Hence, they are not covered under Chapter 21. Papad is specifically specified under 1905 05 40 and papad are preparations of various flours or lentils which are dried, traditionally in the sun or made by machinery in commercial scale. They are not edible as such and the final consumer has to fry in oil before making them edible. This is the case. in respect of the goods supplied by the Applicant too. Therefore, the product is to be classified under 1905 05 40 - Sl.no. 96 of Notification No. 02/2017-CT (Rate) dt 28.06.2017 as amended and Notification No. II(2)/CTR/532(d-5)/2017 vide G.O. (Ms) No. 63 dated 29.06.2017 exempts “Pappad, by whatever name it is known, except when served for consumption” from CGST and SGST respectively.
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