Product "Un-fried Fryums" not classified as "Papad" but under Tariff Item 2106 90 99, attracting 18% GST.

The authority ruled that the product "Un-fried Fryums" manufactured by the applicant are not classifiable as "Papad" under Tariff Item 1905 90 40. Instead, they are classified under Tariff Item 2106 90 99, attracting an 18% GST rate (CGST 9% + GGST 9% or IGST 18%). The decision was based on the interpretation of the common parlance understanding of the term "Papad" and the application of the principle of ejusdem generis.

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Issues Involved:
1. Classification of "Papad" of different shapes and sizes under GST.
2. Determination of the applicable tariff heading and GST rate for the product.

Detailed Analysis:

Issue 1: Classification of "Papad" of Different Shapes and Sizes Under GST

Applicant's Interpretation:
- The applicant, engaged in manufacturing "Papad" of various shapes and sizes, contended that their product should be classified under Chapter Tariff Heading 1905, specifically 19059040, which exempts it from GST as per Notification No. 02/2017-CT (Rate) dated 28.06.2017.
- They argued that despite variations in shape and size, the product remains "Papad" as the ingredients and manufacturing process are consistent with traditional "Papad."

Authority's Findings:
- The term "Papad" is not defined under the Customs Tariff Act, CGST Act, GGST Act, IGST Act, or related notifications. Thus, it must be interpreted in its common parlance.
- The Supreme Court has established that in the absence of statutory definitions, terms should be construed according to their common parlance understanding (Indo International Industries v. Commissioner of Sales Tax, U.P.).
- The applicant's product, commonly known as "Fryums," does not align with the traditional understanding of "Papad" in common parlance or trade.

Judicial Precedents:
- The Tribunal in T.T.K. Pharma Ltd. v. Collector of Central Excise classified "Fryums" as "Namkeen" and not "Papad," emphasizing that the product is not immediately consumable and requires frying.
- The Supreme Court in Commissioner of Commercial Tax, Indore Vs. M/s. T.T.K. Healthcare Ltd. likened "Fryums" to "seviyan," reinforcing that they are not "Papad."

Conclusion:
- The Authority concluded that "Un-fried Fryums" are not classifiable as "Papad" under Tariff Item 1905 90 40.

Issue 2: Determination of the Applicable Tariff Heading and GST Rate for the Product

Authority's Analysis:
- Chapter Heading 2106 covers "Food preparations not elsewhere specified or included," which includes preparations for use either directly or after processing.
- The principle of ejusdem generis was applied to interpret the phrase "by whatever name it is known," limiting the scope to items similar to "Papad."
- The product "Un-fried Fryums" does not fit within this scope and is appropriately classified under Tariff Item 2106 90 99.

Applicable GST Rate:
- As per Sl. No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017, as amended, the product falls under Heading 2106, attracting an 18% GST rate (CGST 9% + GGST 9% or IGST 18%).

Supporting Rulings:
- The Gujarat Advance Authority in M/s. Sonal Product and the Madhya Pradesh Advance Authority in M/s. Alisha Foods have similarly classified "Fryums" under Tariff Item 2106 90 99, attracting an 18% GST rate.

Final Ruling:
- The product "Un-fried Fryums" manufactured and supplied by the applicant is classifiable under Tariff Item 2106 90 99 of the Customs Tariff Act, 1975. The applicable GST rate is 18% (CGST 9% + GGST 9% or IGST 18%).

Ruling:
Question: Under which tariff heading would "Papad" of different shapes and sizes manufactured/supplied by the applicant attract CGST and SGSTRs.

Answer: The product "Un-fried Fryums" manufactured and supplied by the applicant is classifiable under Tariff Item 2106 90 99. The applicable GST rate is 18% (CGST 9% + GGST 9% or IGST 18%).

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