TaxTMI 
TaxTMI 
2021 (7) TMI 540
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....a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant requested for advance ruling on the following; 1. Whether jack fruit chips sold without BRAND NAME are classifiable as NAMKEENS and are covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule of Central Tax (Rate) Notification No.1/2017? 2. Whether the classification of jack fruit chips by my supplier under HSN code 1903 is correct? 3. Whether roasted and salted / salted / roasted preparations such as of ground nuts, cashew nut and other seeds are NAMKEENS and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1/2017? 4. Whether salted and masala chips of Potato and Tapioca are classifiable as Namkeens and when sold without a brand name can they be classified under HSN 2106.90.99 and taxed under Entry 101A of Schedule 1 of Central Tax (Rate) Notification No.1 of 2017? 4. Contentions of the Applicant: 4.1. The ap....
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....f their ingredients. 21069099 Entry Other 4.3. IN RE: P.M. SANKARAN [KER/53/2019 Dated 21st June 2019] and KER/66/2019 dated SEPTEMBER 30, 2019 of this Honourable Authority, it is held that Jackfruit Chips, Banana Chips and Sharkara Varatty fall under HSN 2008.19.40 and have to be classified under Entry 40 of Schedule II of Notification No.1 of 2017 and tax at 12% is liable to be paid. Relevant entries are reproduced below for easy reference; Entry 40 /Sch.II of Notfn No.01 of 2017 HSN 2008 Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included; such as ground nuts, cashew nut roasted, salted or roasted and salted, other roasted nuts and seeds, squash of mango, lemon, orange, pineapple or other fruits. Chapter 20 Chapter Heading Preparations of vegetables, fruit, nuts or other parts of plants. Chapter 20 Chapter Note 1 This chapter does not cover: (a) Vegetables, fruit or nuts, prepared or preserved by the processes specified in chapter 7, 8, or 11. Chapter 8 Chapter Heading EDIBLE FRUIT AND NUTS, PEEL OF CITRUS FRUIT OR MELONS 0....
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....oms Tariff Act uses the words "roasted and fried". So, it is a cumulative condition. Banana Chips, Jack Fruit Chips and Sharkara Varatty are made by frying banana/ jack fruit in edible oil. Being fruits and being not "ROASTED AND FRIED", these cannot be classified under 2008.19.40. In any case, banana and jack fruit are covered by HSN Code 0803 and 0810.90.90 respectively and on this primary ground they cannot be classified under HSN 2008 Advance Ruling IN RE: P.M. SANKARAN [KER/53/2019 Dated 21st June 2019] ruled that Baked Chips come under HSN 2008 19 40 and taxable at 12% as per Entry 40 of 2nd Schedule. [Notification No.1/2017/CT (Rate) dated 28.06.2017 & SRO.No.360/2017]. "From the Ruling, it appears that the applicant himself had conceded that banana chips supplied by him were "baked chips". The Ruling is on the basis of ingredients and classification reported by the applicant and not on an analysis of the products. 4.6. Further, in P. BASHEER Vs. STATE OF KERALA [1993] 91 STC (291) it was held by Honourable High Court of Kerala that the products such as banana chips, tapioca chips, murukku, pakkavada, etc are fried food articles. Relevant portion of the judgment is reproduc....
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....at banana chips, tapioca chips, murukku, achappam, pakkavada and mixture were sold or marketed by the dealer, who is really a baker, cannot be covered by the entry "bakery products" within the meaning of those words as occurring in the Kerala General Sales Tax Act. This is so especially in the context and collocation of words occurring in the First Schedule to the Kerala General Sales Tax Act." 4.7. The ADVANCE RULING NO. KER/66/2019 dated SEPTEMBER 30, 2019, was also a case where applicant himself had raised the query whether Banana Chips, Chakka Chips, Cheema Chakka Chips, Chembu Chips, Kappa Chips, Sharkaravaratty, KovakkaiVattal and PavakkaiVattal are classifiable under HSN Code 2008 19 40 - Other roasted and fried vegetable products and is liable to GST at the rate of 12% as per SI.No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate), dated 28.06.2017. This query was answered by the Authority for Advance Ruling in favour of the applicant. "Applicant had submitted a list of commodities as Namkeen items. The query raised was whether the "Namkeen Items" - Achappam, Avalose Podi, Cheeda, Diamond Cuts (Hot), Kuzhalappam, Murukku and Thatta are classifiable under HSN....
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....Ruling and ruled that the same item is taxable at the rate of 12%. 5.2. Cashew nut, roasted, salted or roasted and salted is classified under HSN 2008.19.10 as per the Customs Tariff. The same is taxable at the rate of 12% as per Serial No.40 of Schedule II of Notification No.01/2017 - Central Tax (Rate) dated 28.06.2017. Ground nut and other seeds are classified under HSN 2008.11.00. The matter has already been discussed in the advance ruling No. KER/66/2019 dated 30.09.2019 of the Kerala Authority for Advance Ruling and ruled that the same item is taxable at the rate of 12%. 5.3. Salted and masala chips of potato and tapioca is classified under HSN 2008.19.40. The same item is taxable at the rate of 12% as per Serial No.40 of Schedule II of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017. The matter has already been discussed in the advance ruling No. KER/66/2019 dated 30.09.2019 of the Kerala Authority for Advance Ruling and rules that the same item is taxable at the rate of 12%. 6. PERSONAL HEARING: The applicant was granted opportunity for personal hearing on 06.01.2021 by virtual mode. Shri. C.Seshadrinadan, CA Authorised Representative of the applicant attend....
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....ter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. The General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 are as follows; Rule 1: The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions; Rule 2: (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materia....
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....e liable to be classified under Chapter 20. Chapter Heading 2008 of the Customs Tariff covers all roasted and fried vegetable products. Frying and roasting are two popular cooking methods that both use high temperature. It is not necessary that both the conditions are to be cumulatively satisfied for classifying a product under the category of roasted and fried products. When according to chapter notes and description of tariff items the products are classifiable under specific headings of Chapter 20 they cannot be classified under Heading 2106 as food preparations not elsewhere specified or included. 7.6. Accordingly, applying the principles of interpretation in Rule 2 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 the Jackfruit Chips, Tapoica Chips and Potato Chips (Whether salted/ masala or otherwise) are classifiable under Tariff Heading 2008 19 40 of the Customs Tariff Act, 1975. Regarding classification of roasted /salted / roasted and salted Cashew nuts, Ground nuts and other nuts there are specific headings under Chapter 20 that covers the products. Accordingly, roasted /salted / roasted and salted Cashew nuts are classifiable....