Residual tariff classification applied where claimed rice bran description was not established by the manufacturing process.

The product described as Rice Bran (22+oil) was held not to answer the tariff description of rice bran in its ordinary and commercial sense, because rice bran is obtained from rice milling and consists of the seed coat, germ and broken grains. The material on record instead showed a product made from rice husk of poha and mamra with sludge or wax oil, and the manufacturing process was not clearly established. In the absence of proof that it fell within the claimed description, the product was classified under residual heading 38259000 and taxed at 9% CGST and 9% SGST under the relevant GST notification.

---

---

Issues: Whether the product described as Rice Bran (22+oil) is classifiable as Rice Bran or under the residual entry of Chapter 3825, and the applicable GST rate.

Analysis: The product was held not to be Rice Bran in the ordinary and commercial sense because Rice Bran is obtained from milling rice and consists of the seed coat, germ, and broken grains. The material before the Authority showed that the product was made from rice husk of poha and mamra together with sludge or wax oil, while the actual process undertaken was not clearly disclosed. In the absence of a demonstrated process bringing the product within the tariff description of Rice Bran, the Authority treated it as a combination product falling within the residual entry for miscellaneous chemical or allied industry products. Applying Explanation (iii) to Notification No. 1/2017-Central Tax (Rate), classification was determined by reference to the First Schedule to the Customs Tariff Act, 1975.

Conclusion: The product was held classifiable under heading 38259000 and liable to GST at 9% CGST and 9% SGST under Serial No. 98 of Schedule III of Notification No. 1/2017-Central Tax (Rate) and the corresponding State notification.

Ratio Decidendi: Where the actual manufacturing process and resultant product characteristics do not establish that the goods answer the tariff description claimed by the applicant, classification falls to be made under the appropriate residual tariff entry on the basis of the Customs Tariff.

---