Classification of savoury snacks and potato starch determined GST treatment under specific tariff entries and packaging conditions.

Ready-to-eat savoury snacks such as potato chips, sev, chivda, bhujia, mamara, chana dal, gathiya and chevda mixture were treated as namkeens, mixtures, bhujia and similar edible preparations under tariff item 2106 90 99. Because they were supplied in predetermined-weight packs bearing the required legal metrology declarations, they were considered pre-packaged and labelled, so the concessional treatment for goods not so packaged did not apply and GST at 12% followed. Dry starch powder extracted from potatoes was separately held to fall under the specific starch heading 1108 13 00, and GST at 12% was applied on that basis.

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Issues: (i) Whether salted and flavoured potato chips, potato sev, potato chivda, sing bhujiya, sev mamara, chana daal, gathiya and khatta mitha chevda mixture are classifiable under tariff item 2106 90 99 as namkeens, mixtures, bhujia, chabena and similar edible preparations, and whether their supply attracts GST at 12% as pre-packaged and labelled goods. (ii) Whether dry starch powder extracted from potatoes is classifiable under tariff item 1108 13 00 and attracts GST at 12%.

Issue (i): Whether salted and flavoured potato chips, potato sev, potato chivda, sing bhujiya, sev mamara, chana daal, gathiya and khatta mitha chevda mixture are classifiable under tariff item 2106 90 99 as namkeens, mixtures, bhujia, chabena and similar edible preparations, and whether their supply attracts GST at 12% as pre-packaged and labelled goods.

Analysis: The products were held to be ready-to-eat savoury snacks. Applying the common parlance understanding of namkeen and the supplementary note to heading 2106, the entry was treated as covering edible preparations of the kind described as namkeens, mixtures, bhujia and chabena. The Authority further held that the applicant's supplies were made in predetermined-weight plastic packs bearing the mandatory declarations required under the Legal Metrology regime, and therefore fell within the amended expression "pre-packaged and labelled". On that basis, the concessional entry for goods not pre-packaged and labelled was held inapplicable, and the goods were brought under the taxable entry for pre-packaged and labelled ready-to-eat edible preparations.

Conclusion: Yes. The snacks were classified under tariff item 2106 90 99 and their supply was held liable to GST at 12%.

Issue (ii): Whether dry starch powder extracted from potatoes is classifiable under tariff item 1108 13 00 and attracts GST at 12%.

Analysis: Potato starch was found to have a specific tariff entry under heading 1108. The Authority treated the product as a starch obtained from potatoes and held that the specific classification prevailed over any residuary treatment. Once classified under heading 1108, the applicable rate under the relevant GST notification for starches was applied.

Conclusion: Yes. Dry starch powder extracted from potatoes was classified under tariff item 1108 13 00 and held liable to GST at 12%.

Final Conclusion: The advance ruling fixed the disputed snack products under the specific edible-preparation heading with the rate applicable to pre-packaged and labelled supplies, while potato starch was separately placed under the starch heading with the corresponding GST rate.

Ratio Decidendi: For ready-to-eat savoury food preparations, classification follows the specific heading and common parlance description, but the concessional rate for namkeens applies only when the goods satisfy the statutory condition of not being pre-packaged and labelled; a product with a specific starch heading must be classified under that heading rather than as a residuary edible preparation.

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