TaxTMI 
TaxTMI 
2021 (8) TMI 492
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....e under. 3. The applicant requested for advance ruling on the following; 1. Whether banana chips (made out of both raw as well as ripe banana) sold without BRAND NAME are classifiable as NAMKEENS and are covered by HSN code 2106.90.99 and taxable under Entry 101A of Schedule I of Central Tax (Rate) Notification No.1 of 2017? 2. Whether Sharkarai Varatty sold without BRAND NAME is classifiable as SWEET MEAT and are covered by HSN Code 2106.90.99 and taxable under Entry 101A of schedule I of Central Tax (Rate) Notification No.1 of 2017? 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 of 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 I of Central Tax (Rate) Notification 1 of 2017? 4. Contentions of the Applicant: 4.1. The Banana Chips and Sarkara Varatty are sold without brand nam....
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....30 Entry Betel nut product known as "Supari" Chapter 21 of Customs Tariff Act Supplementary Note No.6 Tariff item 2106 90 99 includes sweet meats commonly known as "Misthans" or "Mithai" or called by any other name. They also include products commonly known as "Namkeens", "mixtures", "Bhujia", "Chabena" or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 2106 90 99 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, oth....
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....Act, with HSN Code 0803 and 0810.90.90 respectively. So, chips and Sharkara Varatty are not covered by HSN 2008 and hence do not fall under Entry 40 of Schedule II of Central Tax (Rate) Notification No.1 of 2017. Entry 2008 19 40 of Customs Tariff Act refers to "Other roasted and fried vegetable products". Banana and Jackfruit being not vegetables, its chips cannot be classified under this HSN. 4.5. Further, the Entry in Customs 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 chip....
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....kery products"." "8. We are of the view that the Appellate Tribunal was in error in holding that the words "bakery products" will take within its fold anything dealt with or marketed or connected with the bakery. In order to say that particular goods are covered by the said word, those goods should be understood in their natural, ordinary or common parlance as bakery goods. So viewed, we are of the opinion that the mere fact that 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 G....
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....NTIONS OF THE JURISDICTIONAL OFFICER: 5.1. The Jurisdictional Officer submitted that Chapter 20 covers 'Preparations of vegetables, fruit, nuts or other parts of plants'. As per Explanatory Notes to Chapter 20, it does not cover vegetables, fruit or nuts prepared or preserved by the processes specified in Chapter 7, 8 or 11. It is seen that these processes in Chapter 7, 8, or 11 are freezing, steaming, boiling, drying, provisionally preserving and milling. Therefore, any edible part of plant which is prepared or preserved by any other process than these is classifiable under Chapter 20. The banana is sliced, fried and the flavours added. But the essential nature of the product is still the same. As long as the essential nature is retained, the edible parts of plants are classifiable under CTH 2008. [In re: Gourmet Popcornica LLP [TS-491-AAR-2020-NT-Tamil Nadu] [2020 (43) GSTL 112 (AAR-GST-TN)] Chips are nothing but an edible part of the plant prepared with salt and oil. Raw banana is also a vegetable and after going through the process of slicing and frying it does not cease to be a vegetable. Sharkarai Varatty is nothing but an edible part of the plant prepared with syrup....
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....classified under this head. Therefore, it is evident that the entry is a residuary entry in respect of edible preparations and hence the edible preparations shall be classified under this entry only if the same are not classifiable under any of the other specific entries for edible preparations. 7.3. The Explanation appended to the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows; "Explanation:- (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of above table." 7.4. In view of the above, the rules for interpretation of the First Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes are applicable for interpretation of the GST Tariff / Rate Schedule. The General Rules for Inter....
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....classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Rule 4: Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 7.5. Chapter 20 of Customs Tariff specifically covers 'Preparations of vegetables, fruits, nuts or other parts of plants. As per Chapter Note 1 (a) to Chapter 20, the Chapter does not cover vegetables, fruits or nuts prepared or preserved by the processes specified in Chapter 7, 8 or 11. Therefore, all the vegetable, fruit or nut products or preparations made other than by the processes specified in Chapters 7, 8 or 11 are included in the Chapter 20. The processes specified in Chapters 7, 8 or 11 mainly include freezing, steaming, boiling, drying, provisionally preserving and milling. Therefore, any vegetable, fruit, nut or edible parts of plant which is prepared or preserved by any other process than these are liable to be classified under Chapter 20. Chapter Heading 2008 of the Customs Tariff covers all roasted and fried vegetable products. Fryi....