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TMI Blog2022 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions of the applicant, M/s. Dlecta Foods Private Limited are as under:- 2.1 The Applicant, is a manufacturer of goods falling under Chapter 04, 15 and 21 of the Tariff (equivalent to the Customs Tariff Act, 1975 and erstwhile Central Excise Tariff Act, 1985), like Milk, Cream, Cheese & Butter as well as Products such as Dairy Whipping Cream, Non-Dairy Whipping Cream and other (Dark Ganache) and are supplying the same in bulk as well as retail packing. 2.2 Applicant introduced the product "Non Dairy Whipping Cream" ('NDW Cream') since December 2010. The said NDW Cream is obtained from Vegetable Fats and manufactured using Vegetable Fats, Sugar, Emulsifiers, Stabilisers, Additives/Flavors, Sugar and Water in desired proportion. 2.3 The said NDW Cream is used in Bakery / Confectionary product as Topping Cream or Filling Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby declared that save as otherwise expressly provided in sub-section (1) of section 124, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made. Thus, the SVS is limited to the benefit, concession or immunity on the Declarant for which declaration is mad6. Therefore, application made by M/s. RICH GRAVISS PVT LTD under the said Scheme cannot be read as acceptance of classification of the product. The said Scheme envisages settlement of disputes in legacy cases without going into the merits or de-merits and hence cannot be a parameter to decide any classification against the Applicant per se. 2.9 THE PRODUCT MANUFACTURED BY THE APPLICANT: 2.9.1 The product manufactured by the Applicant is known as "Non-Dairy or Analogue creams/toppings". The Applicant manufactures analogue dairy creams or non-dairy creams which are replicas/substitutes of dairy creams where milk fat is replaced by vegetable oil based fats for the purpose of either cost reduction, or functionality or nutritional benefits. The creams m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity. The high speed dispersion and homogenization together constitute the emulsification process. 2.12 THE CLASSIFICATION OF THE PRODUCT BY THE FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA IS EQUIVALENT TO AN EXPERT'S OPINION: The Applicant, without prejudice to whatever is stated herein, submits that the classification dispute of the product NDW Cream is raised without any authority of law or Experts' Opinion and without giving any reason but only ground that M/s. RICH GRAVISS PVT LTD had accepted the liabilities and approached under SVS. The settled classification cannot be disputed unless supported by legal backing and Opinion from an Expert. This is especially so in case of technical products like the product in question. 2.13 In this regard, FSSAI, which is the premier regulatory authority for all Food Products in India, has created a FOOD CATEGORY SYSTEM for classification of all foods and classified the Applicant's Product 'Non-Dairy Creams' as under: a. The non-dairy creams are classified under Food Category 2.3 "Fat emulsions mainly of type oil-in-water, including mixed and/or flavoured products based on fat emulsions". All of the Applicant's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASSIFICATION OF THE APPLICANT'S PRODUCT UNDER CH. 2106 90 99 IS BASELESS AND TOTALLY INAPPLICABLE: 2.15.1 The alternative classification sought by the Department under CH 2106 90 99 on the grounds that the same covers 'Food Preparations' is hardly of any substance. A close look at the Description reveals that CH 2106 covers "Food Preparation not elsewhere specified or included". This means that if there is any food preparation which is specified or included elsewhere in the Tariff Schedule, then the same would by default, not be covered under CH 2106. In the case of the Applicant's product, the same is already specified and included under CH 1517 by virtue of being a specific entry covering the description and process covering the Applicant's product. It is the cardinal principle of classification of goods that the classification giving a more specific description should be preferred over the one giving a more general description. 2.15.2 Conversely, as per Supplementary Note 5 to Chapter 21, CH 2106 (except 2106 90 20 & 2106 90 30), inter cilia, includes: (a) Protein concentrates and textured protein substances; (b) Preparations for use, either directly or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. The Authorized representative made oral submissions with respect to admission of their application. The authorised representative's request to withdraw Question Nos 2 & 3 was accepted and question-1 was admitted, subject to condition that applicant shall clarify whether any notice or adjudication or investigation proceeding regarding Question No.-1 was initiated in their case. 4.2 The application was admitted and called for final hearing on 09.11.2021. The Authorized representative of the applicant, Shri. Neerav Manikar, Learned Advocate was present. The Jurisdictional officer was absent. 4.3 We heard the matter. 05. OBSERVATIONS AND FINDINGS: 5.1 We have perused the records on file, considered the facts of the matter and submissions, both oral and written, made by the applicant. 5.2 We observe that, in their written submission, the applicant has stated as under:- "The Directorate General GST Intelligence, Pune Regional Unit raised a dispute with the classification of said NDW Cream seeking classification of the said product Non-Dairy Cream under Tariff Head 2106 on the basis that one of the manufacturer viz. M/s. RICH GRAVISS PVT LTD with whom identical dispute was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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