Prepared food classification for popcorn from maize confirmed under Chapter 1904, not as maize or cereal grains.

Popcorn made from maize grains, puffed by heating and then seasoned with salt, turmeric powder and a negligible quantity of oil, was treated as a prepared food obtained by roasting cereals rather than as maize under Chapter 1005 or cereal grains otherwise worked under Chapter 1104. The ruling applied the First Schedule to the Customs Tariff Act, 1975 and the Harmonised System of Nomenclature, noting that the product did not retain grain character for Chapter 1005 and that Chapter 1104 excludes goods classifiable in Chapter 1904. It was therefore classified under sub-heading 1904 10 90 and attracted the GST rate under Schedule III of Notification No. 1/2017-Central Tax (Rate).

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Issues: Whether popcorn manufactured from maize grains and sold in unit containers bearing a registered brand name is classifiable under Chapter 1005 as maize, or under Chapter 1104 as cereal grains otherwise worked, or under Chapter 1904 as prepared foods obtained by the roasting of cereals, and the resulting GST rate applicable thereto.

Analysis: The product was made by heating raw corn or maize grains until they puffed and then adding salt, turmeric powder and a negligible quantity of oil for palatability. The applicable GST notification had to be interpreted with reference to the First Schedule to the Customs Tariff Act, 1975 and the Harmonised System of Nomenclature. The product was found not to retain grain presence in a manner required for Chapter 1005. It also did not fall within Chapter 1104 because that chapter excludes goods of Chapter 1904. The product answered the description of prepared foods obtained by the roasting of cereal under Chapter 1904, and therefore attracted the residual sub-heading 1904 10 90 rather than the entries relied on by the applicant.

Conclusion: The product was held classifiable under Chapter Sub-Heading 1904 10 90 of the First Schedule to the Customs Tariff Act, 1975 and fell under Sr. No. 15 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, attracting 9% CGST and 9% SGST or 18% IGST.

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