TMI Blog2021 (12) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... s of either leguminous vegetables(of heading 0713) or roots or tubers(of heading 0714) or of products of Chapter 8. Like other tariff headings in the Chapter, tariff heading 1106 also covers products of individual raw material and not mixtures. Rava Idli mix is admittedly a mixture of flour of pulses, cereals and other ingredients resulting in a different product. Thus the impugned product does not get covered under this tariff heading i.e. 1106. In the instant case the impugned product is admittedly a mixture and does not give the character of either of the constituent flour but altogether a different new product with the different character as Rava Idli Mix . Therefore the impugned product is rightly classifiable under Rule 3(a) supra and hence Rule 3(b) is not applicable. Further as the impugned product is covered under rule 3(a), there is no need to look into rule 3(c) - the impugned product Rava Idli Mix merits classification under tariff heading 2106 and attract the GST rate of 18%, in terms of entry number 23 of schedule-III to the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 which covers all kinds of food mixes including instant food mixes. - KAR A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arket b) Such cereals/grains pulses are sorted, washed and then sent to grinding machine, where it is grinded into flour. c) Sometimes, the applicant purchases the flour directly from the vendors. d) The flours of cereals/grains pulses are mixed in certain proportion added with certain spices. The mixed content is commonly known as Rava Idli Mix e) At the processing unit, the applicant does not carry on any process of cooking, but carries on only mixing process, whereby spices, condiments are mixed with flour of grains, cereals and pulses. Flour of grains, cereals and pulses are used in its primary farm. f) The product Rava Idli Mix is packed in different quantities as per the marketing requirements and distributed through the marketing distribution channel. g) On the packaging, along with other statutory disclosures, applicant also prints the recipe containing the process of preparing Rava Idli by using the subject product adding certain other ingredients such as sour curds and coriander leaves. h) Every consumer of the product Rava Idli Mix is required to follow the process of mixing and adding such other ingredients later to be cooked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of passage through a sieve with an aperture of 315 micrometres (Microns) 500 Micrometres (Microns) (1) (2) (3) (4) (5) Wheat Rye 45% 2.5% 80% -- Barley 45% 3% 80% -- Oats 45% 5% 80% -- Maize (Corn) and 45% 2% -- 80% Rice 45% 1.6% 80% -- Buckwheat 45% 4% 80% -- e) For the purpose of heading 1103, the terms groats and meal mean products obtained by the fragmentation of cereal grains, of which : i. In the case of maize (corn) products, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 (51 of 1975).-Further 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, so far as may be, apply to be interpretation of this notification. c) The applicant, reproducing the rules 1 to 6 under Customs Tariff Act 1975, for interpretation of First Schedule to the said Act, stated that chapter 11 covers the products of the milling industry, malt, starches, inulin and wheat gluten as per the Customs Tariff Act 1975. d) Sub-heading 1106 covers flour, meal and powder of the dried leguminous vegetables of heading 0713, of sago or of roots or tubers of heading 0714 or of the products of chapter 8 . Further as per chapter note 2 of chapter 11 of first schedule to the Customs Tariff Act 1975, this chapter does not cover products if they do not have by weight on the dry product a starch content of 45% and an ash content not exceeding 1.6%. e) The content of puls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es equivalent to 90% of total quantity in the packet. There is no further processing of flours except mixing of flours in different percentages. i) The classification of the product depends on the primary ingredient/major raw materials of the product, as no new product emerges after mixing of flour of grains. j) As per rule 3(a) of the general rules for the interpretation of customs tariff, when goods are prima facie classifiable under two or more headings, classification shall be the heading which provides the most specific description shall be preferred to headings providing a more general description k) As per rule 3(b) of the general rules for the interpretation of customs tariff, mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable. l) The more specific heading, on the basis of rules 3(a) 3(b) of general rules for interpretation of customs tariff, would be 1106 as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.32 95.5% -- r) As per chapter note 3 of chapter 11, Rava Idli Mix could fall under chapter 2302 and the applicable rate of tax is 5% as per notification 01/ 2017-Central Tax. 7. Ms. Neeharika Inti, Deputy Commissioner of Central Tax, Division-6, Bengaluru South Commissionerate, Bengaluru, vide their letter dated 17.09.2021, offered comments on the question raised by the applicant inter alia stating that the product in question is a mix of various ingredients all the ingredients are equally important and hence does not merit classification based on the major constituent of the product. Therefore this office is of the opinion that Rava Idli Mix , manufactured and marketed by the applicant, is correctly classifiable under tariff heading 2016, which attracts 18% GST. PERSONAL HEARING-PROCEEDINGS HELD ON 07.10.2021. 8. Shri. Lokesh Chartered Accountant Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS DISCUSSION 9. At the outset we would like to make it clear that the provisions of CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d product is prepared/manufactured by mixing certain flours of cereals/grains pulses in certain proportion added with certain spices and condiments. However, the applicant has neither indicated the specific constituents (grains and pulses) nor the proportion in which they were mixed. Applicant submitted that the subject product is an instant ready mix, which needs to be mixed with sour curd and other ingredient as required for preparing rava idlis. 14. Chapter 11 covers products of the milling industry; malt; starches; inulin; wheat gluten. While Note 1 to the Chapter details the products which are specifically not covered under the Chapter, Note 2 aides the classification of products under various Tariff headings of the Chapter as under: 2. (A) Products from the milling of the cereals listed in the table below fall in this Chapter if they have, by weight on the dry product : (a) a starch content (determined by the modified Ewers polarimetric method) exceeding that indicated in column (2); and (b) an ash content (after deduction of any added minerals) not exceeding that indicated in column (3). (3). Otherwise, they fall in heading 2302. However, germ of ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case with the impugned product. 15. Further tariff heading 1106 covers flour, meal and powder of (i) the dried leguminous vegetables of heading 0713, (ii) of sago or of roots or tubers of heading 0714 or (iii) of the products of chapter 8 as under: Tariff Item Description of goods 1106 FLOUR, MEAL AND POWDER OF THE DRIED LEGUMINOUS VEGETABLES OF HEADING 0713, OF SAGO OR OF ROOTS OR TUBERS OF HEADING 0714 OR OF THE PRODUCTS OF CHAPTER 8 110610 - Of the dried leguminous vegetables of heading 0713 11061010 - Guar Meal 11061090 - Others 110620 - Of sago or of roots or tubers of heading 0714: 11062010 --- Of sago 11062020 --- Of manioc (cassava) 11062090 --- Of other root ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an edible product food preparation not specified elsewhere. Further Rule 3(a) of the general rules for the interpretation of customs tariff specifies that when goods are prima facie classifiable under two or more headings, classification shall be the heading which provides the most specific description shall be preferred to headings providing a more general description . Thus the tariff heading 2106 is more specific classification of the impugned product. 18. Rule 3(b) of the general rules for the interpretation of customs tariff specifies that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable. In the instant case the impugned product is admittedly a mixture and does not give the character of either of the constituent flour but altogether a different new product with the different character as Rava Idli Mix . Therefore the impugned product is rightly classifiable under Rule 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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