TMI Blog2021 (7) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, have stressed upon the importance of the identity of the goods in common parlance and there is a plethora of case laws which hold that for classification of goods under statutes for taxation of commercial supplies thereof, the primary test is their identity in the market, or in other words, their common parlance in the market. The goods are of different shapes and sizes but similar in respect of the ingredients, manufacturing process and use. Due to advancement of technology, papad does not limit to the same age old traditional round shaped papad but can be in any desired shape and size. In the old era, usually papad was manufactured manually, therefore it was easy for them to manufacture the Round Shape papad. In the modern era, by the advent of technology, the product is being manufactured by machines and dies of different shape and size is used in the machine. Therefore, with the help of dies of various size and shapes, it is convenient to manufacture different shapes and sizes of papad. Further, at entry No. 96 of Notification No. 02/2017-CT (Rate) dated 28-6-17, the description goods is 'Papad, by whatever name it is known, except when served for consumption . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portion in the mixture machine for approximately 20 minutes until all the flours are equally mixed up with each other. The mixed flour is collected in various bags called batch. Cooking of mixed material: The batch is sent for cooking, where the batch is emptied in cooking machine. The batch is cooked with water and then dough is made. Sheeting: The dough is released to the sheeting machine for further process where the dough converts into double sheets and the sheet enters into the forming or shaping machine. Cutting: The formed sheets pass through various types of forming rollers. The rollers cut the sheet in the desired size and shape and send the sheet to the Drying Separating machine. Drying: The sorted puripapad is then sent to the Continuous Dryer where it is dried up to 3 to 4 hours and then sent to shifter through conveying system. Packing: The final product puripapad comes out of the shifter and then they are manually inspected and sent to the packing department. 4 . The applicant has further submitted as follows: (i) On the basis of production process, raw material used, HSN analysis, trade parlance etc., they contend that their product Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar and oil. The applicant submits that their products merit HSN 1905. The Chapter Heading 1905 reads as follows: 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 19051000-Crisp bread - 19052000-Gingerbread and the like- Sweet biscuits; waffers and wafers 19053100--Sweet biscuits 190532-- Waffles and wafers : --- Communion wafers : 19053211---- Coated with chocolate or containing chocolate- 19053219---- Other- 19053290--- Other- 19054000-Rusks, toasted bread and similar toasted products 190590-Other : 19059010---Pastries and cakes- 19059020---Biscuits not elsewhere specified or included- 19059030---Extruded or expanded products, savoury or salted- 19059040---Papad 19059090---Other The General NOTES of HSN of ch. 19 are asunder : This chapter covers a number of preparations, generally used for food, which are made either directly from the cereals of chapter 10, from the products of chapter 11 or from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument for expression of actual human thoughts - In absence of statutory definition in precise terms, it is construction of words, entries and items in taxing statutes in terms of their commercial or trade understanding, or according to their popular meaning - It operates on standard of average reasonable person who is not expected to be aware of technical details of goods - It is construction in sense that people conversant with subject-matter of statute, attribute to it - Rigid interpretation in terms of scientific and technical meanings is to be avoided - However, when legislature has provided a statutory definition of particular entry, word or item in specific, scientific or technical terms, then, interpretation ought to be in accordance with that meaning and not according to common parlance. [paras 18, 31, 34] 10.1 The Hon ble Supreme Court of India in case of CCE, Nagpur u. Shree Baidyanath Ayurved Bhawan Ltd. (2009 (237) E.L.T. 225 (S.C.)] has held that, Common parlance test continues to be one of the determinative tests for classification of a product whether medicament or cosmetic. What is important to be seen is how the consumer looks at a product and what his percepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PAPAD irrespective of their shapes and sizes and irrespective of the ingredients used. (iii) In M/s. Avadh Food Products Vs. State of Gujarat -First Appeal No. 1/2015 read with Rectification Application No. 31/2015 in First Appeal No. 1/2015 Dt - 03/07/2015 reported in 2015 GSTB -II-405 and in M/s. Swethin Food Products Vs. State of Gujarat -2016 GSTB -I 296, Honourable Tribunal has clearly held that Fryums are nothing but PAPAD falling under entry 9(2) in schedule I to the GVAT Act and exempt from payment of tax. 14 . All the above decisions are applicable to the issue at hand, as said goods are of different shapes and sizes but similar in respect of the ingredients, manufacturing process and use. We hold that due to advancement of technology, papad does not limit to the same age old traditional round shaped papad but can be in any desired shape and size. In the old era, usually papad was manufactured manually, therefore it was easy for them to manufacture the Round Shape papad. In the modern era, by the advent of technology, the product is being manufactured by machines and dies of different shape and size is used in the machine. Therefore, with the help of dies of v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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