TMI Blog2020 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 59 of Schedule I of Notification Ms. No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. Applicable rate of tax - products are packed with such a registered Trade Mark in unit containers - Type VI (CTH 11029090) - HELD THAT:- 2.5% CGST as per Sl.No. 55 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 55 of Schedule 1 of Notification Ms. No. II(2)/CTR/532(d-4)/2017, vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. Applicable rate of tax - If the products are packed without a registered brand name - Type I, II, III, IV and V (CTH 11061090) - HELD THAT:- Nil CGST as per Sl.No. 78 of the Notification No. 2/2017-C.T.(Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No. 78 of Notification No. II(2)/CTR/532(d-5)/2017 vide G.O. (Ms) No. 63 dated 29.06.2017 as amended. Applicable rate of tax - If the products are packed without a registered brand name - Type VI (CTH 11029090) - HELD THAT:- Nil CGST as per Sl.No. 74 of the Notification No. 2/2017 -C.T. (Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uminous flour for preparing dishes. When the dhall, gram, pulses are merely crushed into powder without adding any substances, they are called un branded flour of the dried leguminous vegetables (HSN Code 1106) and are exempted. Similarly, unbranded cereal flours (rice Flour, Wheat flour, maize flour, etc.,) without having any other substances also fall under exemption category under HSN Code 1102. 2.2 For making savories and snacks, the above mentioned different types of flour are needed by mere blending/mixing, i.e. for a kind of specific category of savories, some portion of pea flour and gram flour were mixed. Sometimes minimum percentages of rice flour or maize flour are mixed for the preparation of savories. Here there is no addition of any chemical or salt or masala power. It is only a mere blending of flour of pulses and cereals. Though the different kinds of flour of pulses and grams are mixed with rice flour or maize flour, it is still called as flour of pulses and grams and there would not be emergence of a commercially distinct and separate commodity. But such blending/mixture of flour of pulses and grams does not have any separate HSN Code and specific entry under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and are to be classified under 1901 of HSN HSN 1901 is not covered under Notification No. 2/2017-C.T.(Rate), hence the same is taxable and not exempted. The GST rate for the same is levied @ 18% 5.1 The applicant submitted the following categories of proportionate percentage of various kinds of flour of pulses and grams/cereals resulted into mixture of flours: Mixture of Flours Flour of Grams Flour of Peas Flour of Maize Flour of Rice Flour of Urad I Type 80% - 10% 10% - II Type 70% 10% 10% 10% - III Type 50% 20% 20% 10% - IV Type - 70% 15% 15% - V Type 25% 25% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a mixture of flour of ground pulses and cereals improved by the addition of very small amounts of additive and continued to be classified under HSN 1106, if sold only as unbranded, attracts Nil GST vide Sl.No.78 of Notification No.2/2017-Central Tax (Rate), dated 28.06.2017 and if branded, attracts 5% GST vide Sl.No.59 of Schedule I of Notification No. 1/2017 -Central Taxes (Rate) dated 28.06.2017. The primary issue to be decided is whether the product of the applicant, a mixture of the flour or flours of Leguminous Vegetables and Cereals as ingredients at specified percentage of composition depending upon the preparation of the desired type of savories falls under HSN code 1106. 7.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017-Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1102 90 - Other 1102 90 10 - - - Rye flour 1102 90 90 - - - Other HSN Explanatory notes to CTH 1102 states: 11.02 - Cereal flours other than of wheat or meslin.- 1102.20 - Maize (corn) flour 1102.90 - Other This heading covers flours (i.e., the pulverised products obtained by milling the cereals of Chapter 10) other than flours of wheat or meslin. Products of the milling of rye, barley, oats, maize (corn) (including whole cobs ground with or without their husks) grain sorghum, rice or buckwheat are classified in this heading as flours if they fulfil the requirements as to starch content and ash content set out in paragraph (A) of Chapter Note 2 see General Explanatory Note) and comply with the criterion of passage through a standard sieve as required by paragraph (B) of that Note. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading does not covers : (a) Non-defatted soya flour ( heading 12.08 ). (b) locust bean flour ( heading 12.12 ). (c) Soups and broths (whether in liquid solid powder with a basis of vegetable flours or meals ( heading 21.04 ) Products of this heading may be improved by the addition of very small amounts of anti-oxidants or emulsifiers. It is seen from above that products obtained from milling of dried leguminous vegetable including peas, lentils are covered under CTH 1106 and by milling of cereals under CTH 1102. The applicant submitted that the product at hand is manufactured by grinding of pulses, mixing of flours, sieving and the finished product is packed. The flour of grams, peas, rice, maize and urad dal are mixed in various proportions and packed. There is no addition of salt, spices etc nor of any further processing of the flours. As seen in the explanatory notes to chapter 11 above, flours of cereals and flours of dried leguminous vegetable and lentils are classified under chapter 11 if they are obtained only by milling of these raw materials and no further processing has taken place and no addition of other substances with a view for their use as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as are together more than the flours of rice and maize i.e. 80%, 80%, 70% and 70% respectively. This gives these products the essential characteristics of flours of dried leguminous vegetables and lentils i.e classified under CTH 11061090. In Type VI, the proportion of rice flour is 95% and hence it has the characteristics of flour of cereal and hence classified under CTH 11029090. In the case of Type V, there is equal proportion of flour of cereals (25 % rice and 25% maize) and dried leguminous vegetable (25% gram and 25% peas). In this case, Rule 3(c) is applicable i.e. When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Accordingly, Type V product is to be classified under CTH 11061090. 8. Having decided the classification, the applicable rate of tax is dependent on whether the applicant is using a registered brand name which is defined in Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as the brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk in unit containers, the rate of tax will be :- i. Type I, II, III, IV and V (CTH 11061090)- 2.5% CGST as per Sl.No. 59 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 59 of Schedule I of Notification Ms. No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. ii. Type VI (CTH 11029090) : 2.5% CGST as per Sl.No. 55 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl.No. 55 of Schedule 1 of Notification Ms. No. II(2)/CTR/532(d-4)/2017, vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. b. If the products are packed without a registered brand name, the rate of tax will be:- i. Type I, II, III, IV and V (CTH 11061090)- nil CGST as per Sl.No. 78 of the Notification No. 2/2017-C.T.(Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No. 78 of Notification No. II(2)/CTR/532(d-5)/2017 vide G.O. (Ms) No. 63 dated 29.06.2017 as amended. ii. Type VI (CTH 11029090) : nil CGST as per Sl.No. 74 of the Notification No. 2/2017 -C.T. (Rate) dated 28.06.2017 as amended and nil SGST as per Sl.No. 74 of Notification No. II(2)/CT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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