Specific tariff heading prevails over residuary classification for chips and nuts under GST, not common parlance.

GST classification of banana, jackfruit, tapioca, potato, chembu and pavakka chips, and roasted or salted nuts turned on tariff interpretation under the Customs Tariff headings and interpretative rules. Heading 2106 was treated as a residuary provision, while heading 2008 was held to specifically cover fruit, vegetable and nut preparations that remained in substance such products after frying, salting or seasoning. The Authority held that the processes used did not move the goods out of heading 2008, and that roasted or salted nuts and seeds fell under the specific Chapter 20 entries. Common-parlance arguments were rejected in favour of the specific tariff description.

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Issues: Whether banana chips, jackfruit chips, tapioca chips, potato chips, chembu chips and pavakka chips, and roasted or salted ground nuts, cashew nuts and other nuts, sold without brand name, are classifiable as namkeens or sweetmeats under heading 2106 and Entry 101A of Schedule I, or under heading 2008 and Entry 40 of Schedule II of Notification No. 1/2017-Central Tax (Rate).

Analysis: The applicable GST rate schedule is to be interpreted in accordance with the Customs Tariff headings, section notes, chapter notes, explanatory notes and the General Rules for Interpretation. Heading 2106 is a residuary heading for food preparations not elsewhere specified or included, while heading 2008 specifically covers fruits, nuts and other edible parts of plants otherwise prepared or preserved. The products in dispute were found to remain, in substance, fruit, vegetable or nut preparations even after frying, salting or adding masala or jaggery syrup. The Authority held that the processes employed did not take the goods out of heading 2008, and that the specific entries for roasted, salted or roasted and salted nuts and seeds under chapter 20 governed the roasted nut products. The reliance placed on common parlance and on supplementary notes to chapter 21 was rejected as inconsistent with the specific tariff description applicable to the goods.

Conclusion: The disputed chips are classifiable under heading 2008.19.40, and roasted or salted cashew nuts, ground nuts and other nuts are classifiable under heading 2008.19.10 or 2008.19.20, with GST at 12% under Sl. No. 40 of Schedule II. Classification under heading 2106 and Entry 101A was rejected.

Ratio Decidendi: A product covered by a specific tariff heading cannot be placed in the residuary heading merely because it is commonly regarded as a snack or namkeen; classification must follow the specific tariff description read with the tariff notes and interpretative rules.

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