TMI Blog2020 (1) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... e under Tariff Item 2106 90 99. Sl. No. 23 of Schedule III of issued under the CGST Act, 2017 and corresponding N/N. 1/2017-State Tax (Rate) dated 30.06.2017, as amended, issued under the GGST Act, 2017 covers Food preparations not elsewhere specified or included [other than roasted gram, sweetmeats, batters including idli/dosa batter, namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, khakhra, chutney powder, diabetic foods] falling under Heading 2106. Therefore, Goods and Service Tax rate of 18% is applicable to the product Fried Fryums as per Sl. No. 23 of Schedule III of N/N. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the CGST Act, 2017 and Notification No. 1/2017-State Tax (Rate) dated as amended, issued under the GGST Act, 2017 or IGST Act, 2017. - Case No. 14/2019 and Order No. 20/2019 - - - Dated:- 28-11-2019 - MANOJ KUMAR CHOUBEY AND VIRENDRA KUMAR JAIN MEMBER Present on behalf of applicant: Ms. Pooja Sureka PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods Service Tax Act, 2017) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. RECORD OF PERSONAL HEARING: 6.1. Ms. Pooja Sureka, CA appeared for personal hearing. At the outset they informed that the applicant paid only 5000/- for SGST as fee along with the application and the requisite fee of rupees 5000/- under CSGT was paid on 28.08.19.Accordingly they urged to admit the application. Since the requisite fee has been paid on 28.08.19 the application date shall be 28.08.19 only. This was accepted by her. the applicant reiterated the submissions already made in the application. They reiterated the facts submitted along with the application. The Applicant states that 6.2. Applicant, M/s. Alisha Foods is doing business at 24, Mirza Wadi, Ujjain-456006, is a registered concern in GST Act, 2017 having GSTIN - 23ABBFA7513N. Applicant is engaged in manufacturing of Fried Fryums, Namkeens and Popcorns which are ready to eat under the brand name of Target School Times. Applicant has filed an application seeking advance ruling under section 97 of CGST Act, 2017 MPGST Act, 2017 and IGST Act, 2017 for correct classification of Papad and Papad Fryums of different shapes, sizes and varieties (commonly known as Fried Fryums) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consisting of all ingredients whether it is of pulse, rice, maida etc. entitled for exemption. The Hon ble Supreme Court examined the matter under Rajasthan Sales Tax Act, whether Gole Papad manufactured out of maida, salt and starch are the Papad or not. The Hon ble Supreme Court clearly held that size or shape is irrelevant. The Papad of all shapes and sizes are covered under the Entry Papad b) In the case of State of Karnataka Vs. Vasavamba Stores and others (STRP No. 6/2011, 63/2011, 73/2011, 89/2009 = 2012 (10) TMI 977 - KARNATAKA HIGH COURT - considering Hon ble Supreme Court judgment in the case of Shivshakti Gold Finger = 1996 (5) TMI 419 - SUPREME COURT ). held that Papad of all shapes and sizes are covered under the entry Papad and exempted from tax. e) The Hon ble Commissioner of Commercial Tax, Gujarat State, Ahmadabad, in the Determination Order under Section 80 of the VAT Act, 2003 in the case of Jay Khodiyar Agency (2007-D-98-103 dated 11.09.2007) and in the case of Kansara Trading Co. (2011-D-356-357 dated 11.02.2011) held that papad and papad pipes (Fryms) are covered under Entry 9(2) of Schedule-I appended to the VAT Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Indo International Industries Vs. Commissioner of sales Tax, U.P. [1981 (8) E.L.T. 325 (S.C.)] = 1981 (3) TMI 77 - SUPREME COURT , Oswal Agro Mills Ltd. Vs. Collector of Central Excise [1993 (66) E.L.T. 37 (S.C.)] = 1993 (4) TMI 73 - SUPREME COURT and in the case of Commissioner of Central Excise Vs. Connaught Plaza Restaurant (P) Ltd. [2012 (286) E.L.T. 321 (S.C.)] = 2012 (12) TMI 149 - SUPREME COURT . 7.7 It needs to be therefore examined whether Fried Fryums would be covered by the term Papad as understood in common parlance and as decided by higher judicial authorities. 7.8 The issue of proper classification of the product Fry Snack Foods called Fryums and admissibility of exemption notification under Central Excise regime was examined by the Hon ble Customs, Excise and Gold Appellate Tribunal (CEGAT, as it was known then) in the case of T.T.K. Pharma Ltd. Vs. Collector of Central Excise [1993 (63) E.L.T. 446 (Tribunal )] = 1992 (8) TMI 183 - CEGAT, NEW DELHI . In this case, the Hon ble Tribunal, inter-alia, observed as follows :- 6. A reading of these sub-headings makes it clear that the product is not a P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied on the ground that it requires to be fried before use. There is no such understanding placed in the notification with regard to the frying of the item. Even if that be so, then the same would apply to all other items which are namkeens like Papad, Idli-mix, Dosa-mix, Jalebi-mix etc. which are required to be fried before they can be eaten. 7.9 Thus, in the aforesaid decision, the product Fry Snack Foods called Fryums have been considered as Namkeen and not as Papad . 7.10 It is observed that Fried Fryums are eatable and used as food articles or eatables and such fried, salted Fryums are found to be commonly known and used as Namkin . Further it can be seen that Papad even after roasting or frying are known and used as Papad only. Whereas, in commercial or trade parlance also, the Fried Fryums cannot be said to be known as Papad . 7.11 The applicant has relied upon the judgment of Hon ble Supreme Court in the case of Shivshakti Gold Finger = 1996 (5) TMI 419 - SUPREME COURT wherein the Hon ble Supreme Court examined the matter under Rajasthan Sales Tax Act, whether Gol Papad manufactured out of Maida, Salt and Starch are Papa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the product Fried Fryums is appropriately classifiable under Tariff Item 2106 90 99. 7.14 Sl. No. 23 of Schedule III of issued under the CGST Act, 2017 and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017, as amended, issued under the GGST Act, 2017 covers Food preparations not elsewhere specified or included [other than roasted gram, sweetmeats, batters including idli/dosa batter, namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, khakhra, chutney powder, diabetic foods] falling under Heading 2106. Therefore, Goods and Service Tax rate of 18% (CGST 9% + GGST 9% or IGST 180/3) is applicable to the product Fried Fryums as per Sl. No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the CGST Act, 2017 and Notification No. 1/2017-State Tax (Rate) dated as amended, issued under the GGST Act, 2017 or IGST Act, 2017. 8. In view of the foregoing, we rule as under :- RULING (Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017) 8.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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