TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Un-fried Fryums not 'Papad' under GST, ruled for 18% tax rate.</h1> <h3>In Re: M/s. Sonal Product</h3> In Re: M/s. Sonal Product - 2019 (23) G.S.T.L. 260 (A. A. R. - GST), [2020] 75 G S.T.R. 166 (AAR) Issues Involved:1. Classification of 'Papad and papad pipes' (un-fried Fryums)2. Applicable rate of CGST on these productsDetailed Analysis:Issue 1: Classification of 'Papad and papad pipes' (un-fried Fryums)The applicant sought clarification on the classification of their products, 'Papad and papad pipes' of various shapes and sizes, commonly known as un-fried Fryums. They proposed that these products should be classified under Chapter 19, Heading No. 1905, Sub-heading No. 1905 90 40 (Papad) or 1905 90 90 (Others), and thus be exempt from CGST and SGST.The applicant cited several judgments and orders to support their claim, including:- The Hon’ble Supreme Court's decision in Shivshakti Gold Finger, which held that all varieties of papad, irrespective of shape or size, are entitled to exemption.- The Hon’ble Karnataka High Court’s decision in State of Karnataka Vs. Vasavamba Stores, which also supported the classification of various shapes and sizes of papad under the entry 'Papad' for tax exemption.However, the Authority for Advance Ruling (AAR) examined the common parlance and commercial understanding of the term 'Papad' and referred to previous judgments which clarified that un-fried Fryums are not considered 'Papad.' Specifically:- The Tribunal in T.T.K. Pharma Ltd. Vs. Collector of Central Excise classified Fry Snack Foods called Fryums as 'Namkeen' and not as 'Papad.'- The Supreme Court in Commercial Tax, Indore Vs. T.T.K. Health Care Ltd. concluded that Fryums required further cooking and were not considered 'cooked food.'The AAR concluded that un-fried Fryums do not fall under the classification of 'Papad' as per Tariff Item 1905 90 40. Instead, they should be classified under Tariff Item 2106 90 99, which covers 'Food preparations not elsewhere specified or included.'Issue 2: Applicable rate of CGST on 'Papad and papad pipes' (un-fried Fryums)Given the classification under Tariff Item 2106 90 99, the applicable rate of CGST was determined based on the relevant notifications. According to Sl. No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, 'Food preparations not elsewhere specified or included' fall under Heading 2106, attracting a GST rate of 18% (CGST 9% + SGST 9% or IGST 18%).Ruling:(i) The product 'Un-fried Fryums' manufactured and supplied by the applicant is classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975.(ii) Goods and Service Tax rate of 18% (CGST 9% + SGST 9% or IGST 18%) is applicable to the product 'Un-fried Fryums' as per the relevant notifications issued under the CGST Act, 2017, and corresponding State and IGST Acts.
TaxTMI 
TaxTMI 
