Tariff classification by specific description prevails over commercial label; most snacks fell in Chapter 20, while halwa qualified as a sweetmeat.

For tariff classification, a residuary entry under Heading 2106 could not be used where the products were covered by more specific headings read with the chapter notes and interpretative rules. Jackfruit chips, banana chips, sharkara varatty, potato chips, tapioca chips, and roasted or salted ground nut, cashew nut, and seed preparations were treated as Chapter 20 goods, not namkeens, and were taxed at 12%. Halwa, being a sugar-based sweetmeat with no more specific heading applicable, fell under Tariff Item 2106 90 99 and was taxed at 5%. The ruling turned on the specific tariff description of the goods rather than their commercial label.

---

---

Issues: (i) Whether jackfruit chips, banana chips, sharkara varatty, potato chips, tapioca chips, and roasted or salted preparations of ground nuts, cashew nuts, and other seeds were classifiable as namkeens under Heading 2106 and eligible for the lower rate of tax; (ii) whether halwa was classifiable as a sweetmeat under Heading 2106 and eligible for the lower rate of tax.

Issue (i): Whether jackfruit chips, banana chips, sharkara varatty, potato chips, tapioca chips, and roasted or salted preparations of ground nuts, cashew nuts, and other seeds were classifiable as namkeens under Heading 2106 and eligible for the lower rate of tax.

Analysis: Chapter 21 heading 2106 is a residuary entry for food preparations not elsewhere specified or included. The applicable tariff scheme required classification first by the specific heading and the relevant chapter notes. The products made from banana, jackfruit, potato, tapioca, nuts, and seeds were treated as preparations covered by Chapter 20 rather than as namkeens under Chapter 21. The ruling applied the interpretative rules, Chapter Note 1(a) to Chapter 20, and the description of Heading 2008, holding that roasted, fried, salted, or masala versions of these products did not cease to fall under the specific headings merely because they were marketed as savoury snacks.

Conclusion: The products in this issue were not namkeens under Heading 2106. Jackfruit chips, banana chips, sharkara varatty, potato chips, tapioca chips, and the roasted or salted nut and seed preparations were classifiable under Chapter 20 and attracted GST at 12%.

Issue (ii): Whether halwa was classifiable as a sweetmeat under Heading 2106 and eligible for the lower rate of tax.

Analysis: Halwa was found to be a sugar-based edible preparation falling within the category of sweetmeats. Unlike the other goods in dispute, it was not covered by a more specific heading in Chapter 20. The product therefore fell within Tariff Item 2106 90 99 and the notification entry for sweetmeats under Schedule I.

Conclusion: Halwa was classifiable under Heading 2106 90 99 as a sweetmeat and attracted GST at 5%.

Final Conclusion: The ruling rejected the applicant's claim that all the goods were namkeens under Heading 2106. Only halwa was accepted as a sweetmeat under Heading 2106, while the remaining goods were held taxable under Chapter 20 at the higher rate.

Ratio Decidendi: For tariff classification, a residuary entry cannot be used where a product is covered by a more specific heading read with the relevant chapter notes and interpretative rules; classification follows the goods' specific tariff description rather than their commercial label.

---