TMI Blog2021 (7) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. All the products other than Halwa - fall under the category of Namkeens classifiable under Customs Tariff Heading 2106 90, liable to GST at the rate of 5 % as per entry at SI Nos. 101 and 101A of Schedule I of N/N. 01/2017 Central Tax (Rate) dated 28.06.2017? - HELD THAT:- Applying the principles of interpretation in Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 the Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapoica Chips and Potato Chips (Whether salted/ masala or otherwise) are classifiable under Tariff Heading 2008 19 40 of the Customs Tariff Act, 1975. Regarding classification of roasted /salted / roasted and salted Cashew nuts, Ground nuts and other nuts there are specific headings under Chapter 20 that covers the products. Accordingly, roasted /salted / roasted and salted Cashew nuts are classifiable under Tariff Heading 2008 19 10 and other roasted /salted / roasted and salted nuts and seeds are classifiable under 2008 19 20 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1/2017? 4. Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name, can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017? 4. Contentions of the Applicant: 4.1. The Jackfruit Chips, Banana Chips, Sarkara Varatty and Halwa are sold without brand name. Jackfruit chips are made by frying the fruit in edible oil. Banana Chips are made by slicing raw / ripe bananas into thin round pieces and frying in edible oil. Salt and Turmeric are also applied. By adding masala, fried banana masala chips are prepared. Sarkara Varatty is made by frying thick pieces of banana slices in edible oil. Thereafter, they are mixed thoroughly in dense syrup of jaggery and then mixed in powder of dried ginger and cardamom. Halwa is made by cooking prepared maida flour in edible oil. After cooking, sugar and flavour are added and Halwa is ready for sale. Thus Jackfruit Chips, Banana Chips, Sharkara Varatty and Halwa are edible preparations and the first two are sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... weet meats commonly known as Misthans or Mithai or called by any other name. They also include products commonly known as Namkeens , mixtures , Bhujia , Chabena or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 2106 90 99 Entry Other 4.3 . IN RE: P.M. SANKARAN [KER/53/2019 Dated 21st June 2019] and KER/66/2019 dated SEPTEMBER 30, 2019 of this Honourable Authority, it is held that Jackfruit Chips, Banana Chips and Sharkara Varatty fall under HSN 2008.19.40 and have to be classified under Entry 40 of Schedule II of Notification No.1 of 2017 and tax at 12% is liable to be paid. Relevant entries are reproduced below for easy reference; Entry 40 / Sch. II Notfn No.01 of 2017 HSN 2008 Fruits, nuts and other edible parts of plants, otherwise prepared or of preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included; such as ground nuts, cashew nut roasted, salted or roasted and salted, other roasted nuts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this entry is not attracted. Roasted / roasted and salted / salted preparations made out of ground nuts, cashew nut and other seeds are commonly understood as NAMKEENs. Also, salted chips and masala chips of tapioca and potato are also commonly understood as NAMKEENS. They have to be classified as NAMKEENS in view of Supplementary Note No.6 of Chapter 21 of Customs Tariff Act. Note No.1 of Chapter 20 states that the chapter does not cover vegetables, fruit or nuts, prepared or preserved by the processes specified in Chapter 7, 8 or 11. Banana and jackfruit are classified under Chapter 8 of Customs Tariff Act, with HSN Code 0803 and 0810.90.90 respectively. So, chips and Sharkara Varatty are not covered by HSN 2008 and hence do. not fall under Entry 40 of Schedule II of Central Tax (Rate) Notification No.1 of 2017. Entry 2008 19 40 of Customs Tariff Act refers to Other roasted and fried vegetable products... Banana and Jackfruit being not vegetables, its chips cannot be classified under this HSN. 4.5. Further, the Entry in Customs Tariff Act uses the words roasted and fried . So, it is a cumulative condition. Banana Chips, Jack Fruit Chips and Sharkara Varatty are made by fryin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , murukku, pakkavada, etc, it will only show that making of such goods is their individual choice or preference or taste. It is also a matter of common knowledge that modern marketing has many dimensions. For convenience of the customers, certain bakeries may sell pickles, pappadom or even stationery articles. They are goods made or sold out of individual choice or taste probably to cater to their particular customers as part of their business method or marketing method. But, these Isolated or individual choices or taste for marketing particular goods will not and cannot render such goods as one covered by the words bakery products . 8. We are of the view that the Appellate Tribunal was in error in holding that the words bakery products will take within its fold anything dealt with or marketed or connected with the bakery. In order to say that particular goods are covered by the said word, those goods should be understood in their natural, ordinary or common parlance as bakery goods. So viewed, we are of the opinion that the mere fact that banana chips, tapioca chips, murukku, achappam, pakkavada and mixture were sold or marketed by the dealer, who is really a baker canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;, from Persian. 4.9. The Hon'ble CESTAT, New Delhi has observed in Paragraph 8 of its order reported as PEPSICO INDIA HOLDINGS PVT LTD Vs COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, CHANDIGARH-I, [2015 (318) ELT 278 (Tri. -Del.)] that salted food preparations are namkeen . 4.10. In Para 3.1.1 of Chapter 3 of FOOD SAFETY AND STANDARDS (FOOD PRODUCTS STANDARDS AND FOOD ADDITIVES) REGULATIONS, 2011, it is stated that banana chips and similar fried products such as Chiwda, Bhujia, Dalmoth, Kadubale, Kharaboondi, Spiced and fried dais, sold by any name are traditional foods ie., Snacks of Savouries (Fried Products). 5. COMMENTS OF THE JURISDICTIONAL OFFICER: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not offered any comments and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that there are no proceedings pending on the issue against the applicant. 6. PERSONAL HEARING: The applicant was granted opportunity for personal hearing on 06.01.2021 by virtual mode. Shri. C. Seshadrinadan, CA Authoris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be, apply to the interpretation of above table. 7.4. In view of the above, the rules for interpretation of the First Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. The General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 are as follows; Rule 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; Rule 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), prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apters 7, 8 or 11 mainly include freezing, steaming, boiling, drying, provisionally preserving and milling. Therefore, any vegetable, fruit, nut or edible parts of plant which is prepared or preserved by any other process than these are liable to be classified under Chapter 20. Chapter Heading 2008 of the Customs Tariff covers all roasted and fried vegetable products. Frying and roasting are two popular cooking methods that both use high temperature. It is not necessary that both the conditions are to be cumulatively satisfied for classifying a product under the category of roasted and fried products. Since according to chapter notes and description of tariff items, the products are classifiable under specific headings of Chapter 20 and hence they cannot be classified under Heading 2106 as food preparations not elsewhere specified or included. 7.6. Accordingly, applying the principles of interpretation in Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 the Jackfruit Chips, Banana Chips, Sharkara Varatty, Tapoica Chips and Potato Chips (Whether salted/ masala or otherwise) are classifiable under Tariff Heading 2008 19 40 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 1 of 2017? No. The Jackfruit Chips and Banana Chips are classifiable under Customs Tariff Heading 2008.19.40 and liable to GST at the rate of 12% [6% - CGST + 6% - SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. 2. Whether the commodities Sharkarai varatty and Halwa sold without BRAND NAME are classifiable as SWEET MEATS and covered by HSN Code 2106.90.99 and taxable under Entry 101A of Schedule of Central Tax (Rate) Notification 1 of 2017? Sharkara Varatty is classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% - CGST + 6% - SGST] as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. Halwa is appropriately classifiable under Customs Tariff Heading 2106 90 99 and is liable to GST at the rate of 5% [2.5%-CGST + 2.5% - SGST] as per SI No. 101 of Schedule I of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017. 3. Whether roasted and salted / salted / roasted preparations such as of Ground nuts, Cashew nut and other seeds are NAMKEENS and when sold without a brand name, can they be classifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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