TMI Blog2021 (8) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied for classifying a product under the category of roasted and fried products. When according to chapter notes and description of tariff items the products are classifiable under specific headings of Chapter 20 they cannot be classified under Heading 2106 as food preparations not elsewhere specified or included. 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, Tapoica Chips, Potato Chips, Chembu Chips and Pavakka Chips (Bittergourd) (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 of the Customs Tariff Act, 1975. All the products that fall under Chapter Heading 2008 of the Customs Tariff Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re sliced into round pieces and fried in edible oil. Salt is applied at the time of frying. After frying it is sold as such or after mixing it with masala. In the case of Pavakka Chips the sliced pieces are washed thoroughly, mixed with dough and fried in edible oil. Chembu is also sliced in thin pieces and after washing is fried in edible oil. Salt is applied at this stage. Salted chips and masala chips of Tapioca, Potata, Chembu, Pavakka are commonly understood as Namkeens. Roasted and salted / salted / roasted preparations made of Ground nuts, Cashew nuts and other seeds are commonly understood as Namkeens. They have to be classified as Namkeens in view of Supplementary Note No. 6 of Chapter 21 of the Customs Tariff Act. They reproduced the applicable entries in Customs Tariff Act and the Notification No. 01/2017 - CT (Rate) dated 28.06.2017 as follows; Entry 101 A / Sch. 1 of Notification 1 of 2017 HSN 2106.90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, other than those put up in unit container and, (a) bearing a registered brand name; or (b) beari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, orange, pineapple or other fruits. Chapter 20 Chapter Heading Preparations of vegetables, fruit, nuts or other parts of plants. Chapter 20 Chapter Note 1 This chapter does not cover: v) Vegetables, fruit or nuts, prepared or preserved by the processes specified in chapter 7, 8, or 11. Chapter 8 Chapter Heading EDIBLE FRUIT AND NUTS, PEEL OF CITRUS FRUIT OR MELONS 0803 Entry Bananas, including plantains, fresh or dried 0803 90 Entry Other 08039010 Entry Bananas, fresh 08039090 Entry Other 0810 Other fruit, fresh 08109090 Entry Other (submitted that jack fruit is classifiable under this sub-headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps are made by frying banana/ jack fruit in edible oil. Being fruits and being not ROASTED AND FRIED , these cannot be classified under 2008.19.40. In any case, banana and jack fruit are covered by HSN Code 0803 and 0810.90.90 respectively and on this primary ground they cannot be classified under HSN 2008. Advance Ruling IN RE: P.M. SANKARAN [KER/53/2019 Dated 21 st June 2019] ruled that Baked Chips come under HSN 2008 19 40 and taxable at 12% as per Entry 40 of 2 nd Schedule. [Notification No.1/2017/CT (Rate) dated 28.06.2017 SRO.N0.360/2017]. From the Ruling, it appears that the applicant himself had conceded that banana chips supplied by him were baked chips . The Ruling is on the basis of ingredients and classification reported by the applicant and not on an analysis of the products. 4.6. Further, in P. BASHEER vs. STATE OF KERALA [1993] 91 STC (291) it was held by Honourable High Court of Kerala that the products such as banana chips, tapioca chips, murukku, pakkavada, etc are fried food articles. Relevant portion of the judgment is reproduced below for easy reference; 7 We are of the view that the approach and conclusion of the Sales Tax Appellate Tribunal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally a baker, cannot be covered by the entry bakery products within the meaning of those words as occurring in the Kerala General Sales Tax Act. This is so especially in the context and collocation of words occurring in the First Schedule to the Kerala General Sales Tax Act. 4.7. The ADVANCE RULING NO. KER/66/2019 dated SEPTEMBER 30, 2019, was also a case where applicant himself had raised the query whether Banana Chips, Chakka Chips, Cheema Chakka Chips, Chembu Chips, Kappa Chips, Sharkaravaratty, KovakkaiVattal and PavakkaiVattal are classifiable under HSN Code 2008 19 40 - Other roasted and fried vegetable products and is liable to GST at the rate of 12% as per Sl.No. 40 of Schedule Il of Notification No.01/2017 Central Tax (Rate), dated 28.06.2017. This query was answered by the Authority for Advance Ruling in favour of the applicant. Applicant had submitted a list of commodities as Namkeen items. The query raised was whether the Namkeen Items - Achappam, Avalose Podi, Cheeda, Diamond Cuts (Hot), Kuzhalappam, Murukku and Thatta are classifiable under HSN Code 2106 90 and is liable to GST at the rate of 12% as per Sl. No. 46 of Schedule Il of Notification No.01/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r preserved by any other process than these is classifiable under Chapter 20. The banana is sliced, fried and the flavours added. But the essential nature of the product is still the same. As long as the essential nature is retained, the edible parts of plants are classifiable under CTH 2008. [In re: Gourmet Popcornica LLP [TS-491-AAR-2020NT-Tamil Nadu] [2020 (43) GSTL 112 (AAR-GST-TN)] Chips are nothing but an edible part of the plant prepared with salt and oil. Raw banana is also a vegetable and after going through the process of slicing and frying it does not cease to be a vegetable. The Potato, Tapioca, Chembu and Pavakka are sliced, fried and the flavours added. The essential nature of the above products is still the same. Frying and roasting are two popular cooking methods that both use high heat. It would not be right to conclude that both the conditions are to be cumulatively satisfied for classifying a product under the HSN 2008.19.40. Therefore, it is appropriate to classify the products; Jackfruit Chips, Banana Chips, Tapioca Chips, Potata Chips, Chembu Chips and Pavakka Chips under the HSN Code 2008.19.40. There is a specific reference to the products roasted and sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter does not cover vegetables, fruits or nuts prepared or preserved by the processes specified in Chapter 7, 8 or 11. Therefore, all the vegetable, fruit or nut products or preparations made other than by the processes specified in Chapters 7, 8 or 11 are included in the Chapter 20. The processes specified in Chapters 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. When according to chapter notes and description of tariff items the products are classifiable under specific headings of Chapter 20 they cannot be classified under Heading 2106 as food preparations not elsewhere specified or included. 7.6. Accordingly, applying the principl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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