Specific tariff heading prevails over residuary namkeen classification for chips, nuts and snack preparations under GST.

Classification of snack and chip products must follow the tariff heading, relevant chapter notes and general interpretative rules, and a residuary namkeen entry in Chapter 21 cannot be used where a specific heading applies. Jackfruit chips sold without brand name were treated as prepared fruit products under Heading 2008, not namkeens under HSN 2106.90.99, and the supplier's HSN 1903 classification was rejected. Roasted or salted preparations of ground nuts, cashew nuts and other seeds, as well as salted and masala potato and tapioca chips, were also held to fall under Heading 2008 rather than the namkeen entry, attracting GST at 12% under the relevant Schedule II entry.

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Issues: (i) Whether jackfruit chips sold without brand name are classifiable as namkeens under HSN 2106.90.99 and taxable under Entry 101A of Schedule I of Notification No. 1/2017-Central Tax (Rate); (ii) Whether the supplier's classification of jackfruit chips under HSN 1903 is correct; (iii) Whether roasted and salted or salted preparations of ground nuts, cashew nuts and other seeds are namkeens classifiable under HSN 2106.90.99; and (iv) Whether salted and masala chips of potato and tapioca are classifiable as namkeens under HSN 2106.90.99.

Issue (i): Whether jackfruit chips sold without brand name are classifiable as namkeens under HSN 2106.90.99 and taxable under Entry 101A of Schedule I of Notification No. 1/2017-Central Tax (Rate).

Analysis: Classification under the tariff is governed by the terms of the headings, relevant chapter notes, and the general rules for interpretation. Heading 2106 is a residuary entry for food preparations not elsewhere specified or included. Jackfruit chips were found to be classifiable under Heading 2008 as prepared or preserved fruit products, and not under the namkeen entry in Chapter 21.

Conclusion: No. Jackfruit chips are not classifiable as namkeens under HSN 2106.90.99 and are not taxable under Entry 101A of Schedule I.

Issue (ii): Whether the supplier's classification of jackfruit chips under HSN 1903 is correct.

Analysis: The product was held to fall under Heading 2008.19.40 on the basis of its nature as a prepared fruit product. A classification under HSN 1903 was rejected.

Conclusion: No. The classification under HSN 1903 is not correct.

Issue (iii): Whether roasted and salted or salted preparations of ground nuts, cashew nuts and other seeds are namkeens classifiable under HSN 2106.90.99.

Analysis: The entries in Chapter 20 specifically cover roasted, salted and roasted-salted nuts and seeds. The Chapter 21 namkeen entry could not override the more specific tariff coverage under Heading 2008. The products were therefore held to be classifiable under the relevant sub-headings of Heading 2008 and not as namkeens.

Conclusion: No. Roasted or salted preparations of cashew nuts, ground nuts and other nuts/seeds are not classifiable under HSN 2106.90.99 and attract GST at 12% under Entry 40 of Schedule II.

Issue (iv): Whether salted and masala chips of potato and tapioca are classifiable as namkeens under HSN 2106.90.99.

Analysis: Potato and tapioca chips, whether salted, masala, or otherwise, were held to be prepared vegetable products classifiable under Heading 2008. The residuary namkeen entry was held inapplicable where a specific tariff heading covered the goods.

Conclusion: No. Salted and masala chips of potato and tapioca are classifiable under HSN 2008.19.40 and attract GST at 12% under Entry 40 of Schedule II.

Final Conclusion: The disputed products were held to fall under Chapter 20 / Heading 2008 and not under the namkeen entry in Chapter 21, with the applicable GST rate being 12%.

Ratio Decidendi: Where goods are specifically covered by Heading 2008 and the relevant chapter notes, they cannot be classified under the residuary namkeen entry in Heading 2106; specific tariff coverage prevails over general or residuary classification.

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