TMI Blog2018 (10) TMI 1312X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - CT/3368/2018-C3 - - - Dated:- 25-9-2018 - Pullela Nageswara Rao, IRS, Member And Rajan N. Khobragade IAS, Member ORDER M/s. Ramachandran Bror, Kollam, a wholesale distributor of Ada in Kollam District (hereinafter called the applicant) is a registered person having GSTIN 32AAJFM1969P1ZP. The applicant had preferred an application on 20.02.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving richness to some regional varieties of payasams; Known as Ada Pradhaman and Palada Pradhaman . In other words, Seviyan (Vermicelli) and Ada are produced from maida or rice flour and are essentially used for giving richness to different varieties of Kheer / Payasams. The only difference is that Seviyan (Vermicelli) is prepared in the form of sticks and Ada is prepared in the form of thin pieces, making use of different dies. In payasams, where Vermicelli is used Ada is not used. Hence, essentially Ada is a substitute for Vermicllli used for giving richness to certain regional varieties of payasams called Ada Pradhaman and Palada Pradhaman , which are popular in Kerala and some parts of Tamil Nadu. Both Vermicelli and Ada are made of similar ingredients and serve the same purpose namely; giving richness to different varieties of payasams. 8. The question now arises for consideration is 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classificafion shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r; The question before us is whether the department is right in claiming that the items in question are dutiable under Tariff Entry 68. This, as mentioned already, is the residuary entry and only such goods as cannot be brought under the various specific entries in the tariff should be attempted to be brought under the residuary entry. In other words, unless the department can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort cannot be had to the residuary item. 18. In the case of Western India Plywoods Ltd Vs Collector of Customs reported in 2005 (188) ELT 365 SC the Hon ble Supreme Court, inter alia, held that; Application of residuary item only when no other heading expressly or by necessary implication applies. 19. In the case of COMMISSIONER OF CENTRAL EXCISE vs M/s WOCKHARDT LIFE SCIENCES LTD reported in 2012 (277) ELT 299 (SC); the Hon'ble Supreme Court, inter alia, laid down the following principles for classification of goods; There is no fixed test for classification of a taxable commodity. This is probably the reason why the 'common parlance test' or the & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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