2021 (7) TMI 700

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ture machine for approximately 20 minutes until all the flours are equally mixed up with each other. The mixed flour is collected in various SS trolly called Batch. Cooking of mixed material: The batch is sent for cooking, where the batch is emptied in the cooking machine. After cooking the batch, it comes in the form of Hot Dough thick sheet. Then apply oil on both the surface of thick sheet. Then release the sheet on papad making machine. Sheeting: Thick sheet comes to roller to convert it into Thin Sheet of Dough. Cutting : This sheet enters into the forming or shaping machine where there are various types of forming rollers. The rollers cut the sheet in the desired size and shape and send the sheet to the Drying Machine. Drying: The sorted papad are then send to the continuous Dryer where the papad are dried upto 2 hours with the help of the Dryer machine. Packing: The final papad comes out of the Dryer and then they are manually inspected and send to the packing department. 3. The applicant has submitted the manufacturing process of the puripapad as follows: (i) The raw materials required are wheat flour, aata, rava, sal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ere are two conditions for any product to be classifiable under this HSN i.e. 1. It is Papad by whatever name it is known. 2. It is not served for consumption. Hence the classification itself accepts that Papads are known by varieties of names and it shall remain papad even if known by any other name. Question on which Advance Ruling sought: 5. What will be the classification of the goods intended to be produced such as Puripapad arid Urifried papad? Personal hearing: 6. Shri Brijesh Thakar appeared for the hearing (Video conferencing) on 15-6-21 and reiterated the contents of the application. FINDINGS: 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and GGST Act, 2017 are in parimateria and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 8. We have carefully considered all the submissions made by the applicant. The applicant has submitted that main ingredients of their goods are whe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ities Pvt. Ltd. Vs. Collector of Customs [1992-59-ELT-189-Tribunal], the H'ble Tribunal was of the view that the classification on the basis of predominant contents is generally accepted as proper test. Further, H'ble Allahabad High Court in the case of Commissioner of Customs, C.G.O. Vs. Sonam International [2012-275- ELT-326-ALL] upheld that assessment of goods with regard to payment of customs duty is to be made based on contents involved. 10. The entry No. 96 of Not. No. 02/2017- CT (rate) dated 28-6-17 has description of goods which reads as under: Papad by whatever name it is known, except when served for consumption. Therefore it can be deduced that all types of "Papad" as per trade/common parlance name are covered under the said entry. In the matters of classification of goods under taxation statutes, all the judicial forums, including the Apex Court, have stressed upon the importance of the identity of the goods in common parlance and there is a plethora of case laws which hold that for classification of goods under statutes for taxation of commercial supplies thereof, the primary test is their identity in the market, or in other words, their common parlance in the mark....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eaten either after roasting or after frying, but not in uncooked form. (iv) Papad becomes crispy after roasting or frying. People savor the Papad, only when Papad is crispy. (v) Papad is an accomplishment to Indian meal. 12. The subject goods are thin and wafer like product. At this stage, the product is not ready for consumption. Traditionally Papad has been prepared manually, in round shape. However, when ingredients and process are similar to 'papad', then the product in question is nothing but a kind of 'papad' irrespective of their shape and size. 13. Now would it be proper to group the subject goods which are having Round shape, manufactured by using ingredient of cereal flour and the products having the same characteristic and uses but different shapes and sizes. We find that for classification of product, the ingredient, uses and common parlance test is decisive factor and not the name. In this regard, we rely upon the following  judgements on the subject matter: (i) Hon'ble Supreme Court of India in case of Shiv Shakti Gold Finger Vs. Assisstant Commissioner, Commercial Tax, Jaipur -(1996) 9 SCC 514 wherein Honourable Supreme Court has....