Dutiability of Roasted Rava and their classification

[Kadayam Ganapathy Subramanian]

Dear Sirs,

Raw Rava is processed out of wheat and the same is nothing but groats of wheat falling under central excise tariff subheading No.11031110 which attracts nil rate of duty as per central excise tariff. The Raw Rava is again subject to processing of drying and roasting and packed in pouch of retail pack.

The department wants to classify the Roasted Rava under central excise tariff subheading No.19019090 as food preparation of groats which attracts duty. 

Our question is whether the process of drying & roasting of raw Rava amounts to manufacture or not and the classification of roasted Rava as determined by the department is correct or not.

Please give your valuable opinion in this regard by highlighting the legal provisions and HSN Explanatory notes.

Regards,

K.G Subramanian

e.mail ID : gskmani at the rate of hotmail.com.

[YAGAY andSUN]

Dear Subramanian,

We have gone through your query and understand that basically you want clarification on the classification of Roasted Rava under the C.E.Tariff of India.

Whether such process would tantamount to manufacture or not?

Whether it would be fall under the tariff heading 11031110 or tariff heading 19019090?

This matter needs lots of research, interpretation of legal provisions, case laws, notifications, circulars, Act and Rules made thereunder.

We can help you out and are keen to provide our services in this matter.  For this we would charge a nominal fees.  Please do contact us for written opinion.

Regards,

Team YAGAY & SUN

(Management and Indirect Tax Consultants)

Please do contact us

 

AI Summary

Classification of roasted rava: whether drying and roasting amount to manufacture, affecting excise tariff treatment. Whether drying and roasting of raw rava (wheat groats) constitutes manufacture and whether the roasted product should be classified as raw groats (nil duty) or as a food preparation (dutiable) is raised. The department proposes reclassification to a food-preparation tariff heading. The respondent states that determining classification and manufacture requires detailed analysis of statutory provisions, HSN Explanatory Notes, notifications, circulars and case law, and offers a paid written opinion rather than a definitive forum reply.