TMI Blog2023 (1) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under the CGST Act. So, common parlance test has to be applied. In common/commercial parlance, NAMKEEN means SAVOURY SNACK that is ready to eat and is a food product prepared by applying salt, masala and the like. The applicant food products salted and flavored Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Sing Bhujiya, Sev Mamara (Roasted Puffed Rice with Nylon Sev), Chana Daal (Fried split Bengal Gram), Gathiya and Khatta Mitha Chevda Mixture are salted and savory products. These products are ready to eat and directly consumed by human beings. Therefore, the applicant food products be classified under CTH 21069099 of Customs Tariff Act. Rate of GST applicable on the applicant food products - HELD THAT:- The applicant supply its food product in packages (plastic bag) of pre-determined weight and have mandatory declarations which required as per the Legal Metrology Act,2009 (1 of 2010) and the rules made there under. Thus applicant intended supply of food products is pre-package and labelled where as the entry No. 101A of Not No. 1/2017-CT (Rate) is applicable to the goods which are not pre-packaged and labelled. The entry No. 101A of the Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of all the above products is as follows: I. Potato Chips (salted and masala for various flavors):- Raw potatoes shall be fed into clearing machine to remove stones heavy materials. Then machine-based grading shall be done to remove the small size potatoes. Then machine-based washing shall be done to remove dust and dirt from potatoes. Then Peeling machine shall remove the thin layer of skin from the potatoes and again a machine based washing shall be done to completely remove the peel from potato. During this process extra water and starch shall be extracted, as a by-product. Then slicing machine shall slice, the peeled potatoes into uniform slices and such slices shall be passed from vibrator machine to again remove extra water and starch from sliced potatoes. Then potato slices shall be fried in fryer machine in continuous deep fry at 180-187 C temperature, which shall convert the potato slices into fried potato chips. Then manual sorting of damaged chips shall be done and then seasoning with various masala or flavors shall be done of such fried chips and then final packing of such potato chips shall be done in unbranded plastic bags, which it to be sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... frying machine. Then dough extrusion machine extrudes sieve into fryer machine where deep frying in vegetable oil is done at 175 c temperature for 15 seconds. Then it is put on de-oiling and cooling conveyer belt and passed through tumbler and seasoning applicator to add various spices flavors and then packed in plastic unbranded bags of different size and weights . which is to be sold to customers. V. Sev Mamara (Roasted Puffed Rice with Nylon Sev):- Frist of all Sorting of raw puffed rice is done to remove damage faulted material. Then puffed rice is roasted on medium heat. Then roasted puffed rice are polished with hot oil uniformly. Then roasted and polished puffed rice material is transfered into the seasoning drum and seasoning of various flavors is done. Then pre-prepared nylon sev is mixed with the seasoned and roasted puffed rice as per standard ratio in mixing drum. Then it is packed in plastic unbranded bags of different size and weights, which is to be sold to customers. VI. Fried Chana Daal (Split Bengal Gram),- First of all Repeated washing by water for approx 10 times is done for raw Split Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhatti Oil Sampling Testing (FFA) Frying 190 +/- 5 C, Dwell time 160 +/- 30 Second DE oiling + Cooling Collect into Clean Bucket with Liner 4. Sada Sev Make Dry mix of Whit Salt, Gram Besan, Starch and Pea Floor Blend Prepare Dry mix With Edible Oil Make dough into dough Mixer (Dry mix + Water) Take into Tray Transfer to Batch Fryer for Frying QC Person Testing Bhatti Oil FFA, PV Extrusion from Extruder Sieve into fryer Heat oil Frying at 175 +/- 2 C for 70 +/- 10 Second Collect into Clean Bucket with Liner 5. Bhavnagri Gathiya Make dry mix of White Salt, Baking Soda, Gram Flour, Pea Floor, Ajwain, and Starch Powder Mixing Of Drymix with Edible Oil Make dough into dough Mixer (Drymix + Water) Take into Tray Tranfer to Fryer for Fry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommonly known as Namkeens , mixtures , Bhuiia , Chabena or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 3.1 It is submitted that the products which are commonly known as Namkeens , mixtures , Bhujia , Chabena or called by any other name, should be classified under tariff item 2106 9099 and Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 3.2 The applicant has submitted that the word Namkeen is not defined under GST Law and it has been specifically provided in supplementary note No 6, that Products commonly known as Namkeen are covered under that tariff item No 2106 90 99. The applicant has referred the dictionary meaning of Nankeen: As per oxford dictionary: Namkeens means any small meal or amount of food that tastes of salt As per laxico dictionary: Namkeens means A small savoury snack or dish savoury means (of food) belonging to the category that is salty or spicy rather than sweet. 3.3 In general, Namkeen is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... namkeens, bhujia, chabena and similar edible preparations and attract applicable GST rate. Thus, this circular supports the view that, when salted or masala flavored potato chips are sold as namkeens in market then it shall be classified under tariff heading 2106 90 only. 4. The applicant has referred Entry No 101 A. Schedule -1 (for 5 % GST Rate) of NOTIFICATION NO. 1/2017-CENTRAL TAX (RATE), DATED 28-6-2017, is reproduced here under : SI.No. Chapter/ Heading/ Subheading/ Tariff item Description of Goods 101A 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) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]] 5. The applicant has submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply for Question no -1 above, when the Mixture or Chabena or similar other edible preparations in ready for consumption form are sold without brand name, then it shall be classified under entry No 101 A of schedule -1 of Notification No 01/2017- Central Tax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. 3.3 Thus For Potato Chivda [Potato Salli Mixture] shall be classified under tariff item No 2106 90 99 and is liable for GST rate of 5 % when sold without brand name. For Question No: 4 (For Sing Bhujiya): 4.1 As per the manufacturing process described in statement of facts, it is clear that Sing Bhujiya is manufactured with various raw materials like peanuts, Gram flour, salt and various spices. Thus, the final product is totally different from anyone specific basic ingredient used to manufacture the same. 4.2 The Final product of Sing Bhujiya is being sold in market as Bhujiya only, and commonly it is used a savory snacks only. And as discussed in detailed in Justification Reply for Question no -1 above, when the Bhujiya or similar other edible preparations in ready for consumption form are sold without brand name, then it sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. 6.3 Thus Fried Chana Daal [Split Bengal Gram) shall be classified under tariff item No 2106 90 99 and is liable for GST rate of 5 % when sold without brand name. For Question No: 7 (For Gathiya): 7.1 As per the manufacturing process described in statement of facts, it is clear that Gathiya is manufactured with various raw materials like White Salt, Baking Soda, Gram flour, Pea Floor, Black pepper, carom seeds, edible oil and Starch Powder. Thus, the final product is totally different from anyone specific basic ingredient used to manufacture the same. 7.2 The Final product of Gathiya is being sold in market as Namkeen only, and commonly it is used a savory snacks only. And as discussed in detailed in Justification Reply for Question no -1 above, when the Namkeen or similar other edible preparations in ready for consumption form are sold without brand name, then it shall be classified under entry No 101 A of schedule -I of Notification No 01/2017-Central Tax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. 7.3 Thus, Gathiya shall be classified under tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Starches; inulin - Starches: CGST SGST/UTGST IGST 1108 11 00 -- Wheat starch kg. 6% 6% 12% 1108 12 00 -- Maize (corn) starch kg. 6% 6% 12% 1108 13 00 -- Potato starch kg. 6% 6% 12% 1108 14 00 -- Manioc (cassava) starch kg. 6% 6% 12% 1108 19 -- Other: 1108 19 10 --- Sago kg. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or advance ruling as well as the submissions made by authorised signatory, during the personal hearing proceedings on 26-9-22 before this authority. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts the applicant's interpretation of law. 8. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 9. We find that the issue before us is to determine the classification and applicable GST rate of un-branded product viz. salted and flavored Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Sing Bhujiya, Sev Mamara (Roasted Puffed Rice with Nylon Sev), Chana Daal (Fried split Bengal Gram), Gathiya, Khatta Mitha Chevda Mixture and Dry Starch Powder. 10. The applicant has submitted that they intend to supply food products as mentioned above in the plas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NCLUDED 2106 10 00 - Protein concentrates and textured protein substances 210690 - Other: --- Soft drink concentrates: 2106 90 11 --- Sharbat 2106 90 19 --- Other 2106 90 20 --- Pan masala 2106 90 30 --- Betel nut product known as Supari 2106 90 40 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included: lactose syrup: glucose syrup and malto dextrine syrup 2106 90 50 --- Compound preparations for making non-alcoholic beverages 2106 90 60 --- Food flavouring material 2106 90 70 --- Churna for pan 2106 90 80 --- Custard powder --- Other: 2106 90 91 --- Diabe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se where any actionable claim or any enforceable right in respect of 'such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]] 13.1 We find that the applicant argument that its food product cover under Entry No. 101A is based on the basis that the packages do not contain any brand. It means applicant food packages does not bear brand name and are un-branded. The above entry No. 101A has been amended vide Sr. No. (xi) of Not. No. 6/2022-CT (rate) dated 13-7-2022 w.e.f 18-7-22 is reproduced as under : (xi) against S. No. 101 A, in column (3), for the portion beginning with the words other than those put up in and ending with the words and bracket as in the ANNEXURE] , the words , other than those pre-packaged and labelled shall be substituted: 13.2 After the said amendment Entry No. 101A of Not. No. 1/2017-CT (Rate) dated 28-6-2017 with effect from 18-7-22 is read as under: Schedule-II {GST Rate @ 5%} 101A. 210690 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form other than those pre-pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect from the 18lh July 2022, this provision undergoes a change and GST has been made applicable on supply of such pre-packaged and labelled commodities attracting the provisions of Legal Metrology Act, as detailed in subsequent questions. For example, items like pulses, cereals like rice, wheat, and flour (aata), etc., earlier attracted GST at the rate of 5% when branded and packed in unit container (as mentioned above). With effect from 18.7.2022, these items would attract GST when pre-packaged and labelled . Additionally, certain other items such as Curd. Lassi, puffed rice etc. when pre-packaged and labelled would attract GST at the rate of 5% with effect from the 18th July, 2022. Essentially, this is a change in modalities of imposition of GST on branded specified goods to pre-packaged and labelled specified goods. [Please refer to notification No. 6/2022-Central Tax (Rate) and corresponding notification under respective SGST Act, IGST Act] 2. What is the scope of 'pre packaged and labelled' for the purpose of GST levy on food items like pulses, cereals, and flours? For the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]] 13.7 The said entry was amended vide No. Not. No. 6/2022-CT (rate) dated 13-7-2022 w.e.f 18-7-22 vide Sr. No. (iii) of Schedule-II as under : (iii) against S. No. 46, in column (3), for the portion beginning with the words put up in and ending with the words and bracket in the ANNEXURE] , the words , pre-packaged and labelled shall be substituted; 13.8 Amended Entry No. 46 of Not. No. 1/2017-CT (Rate) dated 28-6-2017 of Schedule-II and GST Rate @12% with effect from 18-7-2022 is read as under: 46 2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form [other than roasted gram] [, pre-packaged and labelled] 13.9 The above entry no. 46 is eligible for the supply of pre-packaged and labelled in terms of clause (ii) inserted in explanation of Notification No. 1/2017-CT (Rate) dated 28-6-17. We have already hold that the applicant intended supply of food product viz. salted and flavored Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Not. No. 1/2017-CT (Rate) dated 28-6-2017 as amended and attracts tax rate @12% {CGST 6%+SGST 6% and IGST 12%}. 15. We, hereby pass the Ruling: RULING The tariff classification and GST Tax rate of the applicant products are as under : SI. No. Name of the Product Classification (HSN code) GST Tax Rate 1 Salted and flavored Potato Chips 21069099 12% {CGST6%+SGST6% IGST 12%} 2 Potato Sev (Aloo Sev) 21069099 12%{CGST6%+SGST6% IGST 12%} 3 Potato Chivda (Potato Salli Mixture) 21069099 12%{CGST6%+SGST6% IGST 12%} 4 Sing Bhujiya 21069099 12%{CGST6%+SGST6% IGST 12%} 5 Sev Mamara (Roasted Puffed Rice mixed with Nylon Sev) 21069099 12%{CGST6%+SGST6% IGST 12%} 6 Chana Daal (Fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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