Specific tariff entries prevail over residuary namkeen classification for snack products under Chapter 20

Products specifically covered by Chapter 20 cannot be classified under residuary Heading 2106 merely because they are sold as snacks or namkeens. Banana chips, sharkara varatty, roasted or salted nuts and seeds, and salted or masala potato and tapioca chips were treated as falling under the relevant Heading 2008 entries rather than the namkeen entry in Heading 2106. The tariff classification followed the specific chapter description, chapter notes and interpretative rules, with the more specific heading prevailing over the general one. The operative effect was classification under Chapter 20 at the GST rate applicable to those entries.

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Issues: (i) Whether banana chips and sharkara varatty sold without brand name are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I of Notification No. 1/2017-Central Tax (Rate); (ii) Whether roasted, salted or roasted and salted preparations of ground nuts, cashew nuts and other seeds are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I; (iii) Whether salted and masala chips of potato and tapioca are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I.

Issue (i): Whether banana chips and sharkara varatty sold without brand name are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I of Notification No. 1/2017-Central Tax (Rate)

Analysis: Heading 2106 is a residuary heading for food preparations not elsewhere specified or included. The classification exercise therefore required examination whether the products were specifically covered by Chapter 20, particularly Heading 2008, which covers fruits, nuts and other edible parts of plants otherwise prepared or preserved. Applying the interpretation rules to the tariff and the chapter notes, the products were found to be prepared food articles falling under Heading 2008 and not residuary namkeen entries under Heading 2106.

Conclusion: The issue is answered against the assessee. Banana chips and sharkara varatty are classifiable under Heading 2008.19.40 and attract GST at 12% under Entry 40 of Schedule II.

Issue (ii): Whether roasted, salted or roasted and salted preparations of ground nuts, cashew nuts and other seeds are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I

Analysis: The tariff description in Heading 2008 expressly includes roasted and salted nuts and seeds, and Supplementary Note 6 of Chapter 21 does not displace that specific coverage. Since the goods were specifically covered by Chapter 20 entries, the residuary namkeen entry in Heading 2106 could not be invoked. The products were therefore classified according to the more specific tariff headings within Chapter 20.

Conclusion: The issue is answered against the assessee. Roasted or salted cashew nuts fall under Heading 2008.19.10 and roasted or salted ground nuts and other nuts fall under Heading 2008.19.20, with GST at 12% under Entry 40 of Schedule II.

Issue (iii): Whether salted and masala chips of potato and tapioca are classifiable as namkeens under Heading 2106 and taxable under Entry 101A of Schedule I

Analysis: Potato and tapioca chips are prepared edible products of plant origin and, on the tariff scheme applied, fall within Heading 2008. The process of frying and seasoning did not take them out of the specific Heading 2008 coverage. As the goods were already classifiable under a specific heading, they could not be treated as namkeens under the residuary Heading 2106.

Conclusion: The issue is answered against the assessee. Salted and masala chips of potato and tapioca are classifiable under Heading 2008.19.40 and attract GST at 12% under Entry 40 of Schedule II.

Final Conclusion: The ruling affirms that the disputed snack products are not eligible for classification as namkeens under Heading 2106 and instead fall within the specific tariff entries of Chapter 20, attracting tax at the higher rate prescribed for those entries.

Ratio Decidendi: A product specifically covered by a more specific tariff entry cannot be classified under a residuary heading merely because it is commonly regarded as a snack or namkeen; classification must follow the terms of the tariff, chapter notes and interpretative rules, and the specific heading prevails over the general one.

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