TMI Blog2020 (6) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rule 3 (a)); or has any specific essential characteristic by which we can describe the product (Rule 3 (b)) - Rule 3 (c) provides that when goods can t be classifiable under Rule 3(a) or 3(b), then they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Thus even if the applicant s argument of classification of impugned products under heading 1905 as well as the classification under heading 2106 are considered as two relevant headings, the heading 2106 occurs last in numerical order and hence the heading 2106 would be more appropriate and right classification by virtue of Rule 3(c). Applicability of the benefit of entry No.99A of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended vide Notification No. 34/2017-Central Tax (Rate) dated 13.10.2017 - HELD THAT:- The GST rate of 5% is applicable to the products subject to fulfillment of the conditions that (i) they should be classified under heading 1905 or 2106 and (ii) they must be either khakhra, plain chaptatti or roti. In the instant case the first condition of classification is fulfilled as the classification of the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant stated that the product Whole Wheat parota and Malabar (refined floor) parota is available in ambient and frozen form with a shelf life of minimum 3 days and maximum 7 days. The applicant supplies the product to distributors, retailers and other foodservice operators located in India and overseas. The product consists the ingredients of refined wheat flour (maida), RO purified water, edible vegetable oil, edible vegetable fat edible vegetable salt. After adding all the ingredients, the product will be subjected to heat treatment on a pan or tawa, for making it available for consumption. The applicant contends that the product merits classification under Chapter heading 1905, under the product description of Khakhra, plain chapatti or roti . The applicant, quoting the Notification No. 1/2017-Centra1 Tax (Rate) dated 28.06.2017, as amended by Notification No.34/2017-Central Tax (Rate) dated 13.10.2017, stated that a new entry No.99A has been inserted with the description Khakhra, plain chapatti or roti , without defining the said description. The applicant further quotes the aforesaid notification and claims the applicability of Customs Tariff Act 1975, explanatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... headings or notes do not otherwise require is intended to make it clear that the terms of the heading and any relative section or chapter notes are paramount i.e. they are the first consideration in determining classification. In the instant case, the cereal used for making the product is wheat, falling under chapter 10 and wheat flour maida flour falls under chapter 11. Further the product requires cooking before consumption. Accordingly, on combined reading of general rules of interpretation explanatory notes with respect to chapter 19, the relevant chapter heading that merits classification of the instant product would be 1905 - Bread, pastry, cakes, biscuits and other baker s wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, Sealing wafers, rice paper and similar products. The next level of classification is 6 digit one. All the products at this level may not be explicitly listed with their description and the said description is illustrative but not exhaustive. Accordingly some products may be named explicitly and the rest would be referred to as Other . It is evident from explanatory notes to cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Ltd., Madras Rubber Factory Ltd., Vs Union of India and others 1983 (13) ELT 1566 (SC) = 1975 (10) TMI 94 - SUPREME COURT c. Bharat Forge and Press Industries (P) Ltd., Vs CCE, Baroda 1990 (45) ELT 525 (SC) = 1990 (1) TMI 70 - SUPREME COURT d. CCE vs Wockhard Life Sciences Ltd., 2012 (277) ELT 299 (SC) = 2012 (3) TMI 40 - SUPREME COURT In view of the above, the applicant contends that the product whole-wheat parota and Malabar (refined flour) parota, in sum and substance akin to Roti and are manufactured / prepared through an identical process and hence can not be classified under the residual entry. PERSONAL HEARING / PROCEEDINGS HELD ON 09.01.2020. 7. Sri Ankush Surana, C.A., M/s. Pricewaterhouse Co., LLP, and duly authorised representative of the applicant appeared for personal hearing proceedings held on 09.01.2020 reiterated the facts narrated in their application. 8. FINDINGS DISCUSSION: 8.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Sri Ankush Surana, C.A., M/s. Pricewater house Co., LLP duly authorised representative of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 or from food flour of other Chapters (including cereal flour). They further rely upon General Rules of Interpretation to state that since Chapter 19 specifically mentions, Preparation of Cereals, flour the product should fall under Chapter Heading 1905. Lastly they contend that the product should not be classified under the residual entry at Sr. No. 453 of the 3rd Schedule of Notification No. 01/2017-CT (R) dated 28.06.2017 since the product merits classification under Chapter Heading 1905. 8.7 The applicant contended that their products merit classification under heading 1905 90 90, whose description is as under: Tariff Heading Description 1905 Bread, pastry, cakes, biscuits and other bakers wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products. 1905.90 Other 1905.90.90 Other It could be easily inferred from above that Chapter 19 covers preparations of flour, generally used for food, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms Tariff Act 1975, which are as under: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roducts under heading 1905 as well as the classification under heading 2106 are considered as two relevant headings, the heading 2106 occurs last in numerical order and hence the heading 2106 would be more appropriate and right classification by virtue of Rule 3(c) supra. 8.11 Now the remaining issue to be discussed, as the classification issue has been resolved, is the applicability of the benefit of entry No.99A of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended vide Notification No. 34/2017-Central Tax (Rate) dated 13.10.2017, which specifies the applicable rate of GST as 5%, in respect of the goods covered under heading 1905 or 2106 and having description as Khakhra, plain chapatti or roti 8.12 It could be seen from the foregoing that the GST rate of 5% is applicable to the products subject to fulfillment of the conditions that (i) they should be classified under heading 1905 or 2106 and (ii) they must be either khakhra, plain chaptatti or roti. In the instant case the first condition of classification is fulfilled as the classification of the impugned products has been resolved as 2106. As for as the second condition is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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