AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (9) TMI 567
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....nion Paratha, 62% in Plain Paratha, 39% in Mooli Paratha, 62% in Laccha Paratha and 37% in Aloo Paratha. The other ingredients are water, edible vegetable oil, salt, antioxidant etc. The details of ingredients of each of the varieties of Paratha are disclosed on the packings of the products in accordance with the statutory requirements of Prevention of Food Adulteration Act, and such other statutes. (ii) Parathas supplied and sold by them in packed condition are to be placed directly on pre-heated flat pan or griddle for being heated on a medium flame for about 3-4 minutes and during this period, paratha is to be flipped after every 30 seconds. The cooking instructions are also printed on the packing of the product. For ready reference, packing of each of the varieties of Paratha are submitted in Annexure-I to the application. (iii) It is noteworthy that the method of cooking is common for all the varities of Paratha, and also that the principal ingredients for all varieties is whole wheat flour and the other ingredients like Alu, vegetables, Mooli, Onion, Methi etc. are added only for the purpose of taste and flavour, but otherwise the essential character of all the varieties ....
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....food in southern India, especially in Kerala and Tamil Nadu. It is also available in other South Indian States like Karnataka, Maharashtra and the countries of United Arab Emirates, Sri Lanka etc. There are different types of porotta including coin porotta, Malabari porotta, berotta etc." b. "A paratha is a flatbread native to the Indian subcontinent, prevalent throughout the modern-day nations of India, Sri Lanka, Pakistan, Nepal, Bangladesh, Maldives and Myanmar, where wheat is the traditional staple. Paratha is an amalgamation of the words parat and atta, which literally means layers of cooked dough.' (v) Kerala paratha are popularly pronounced as 'parotta' and Laccha paratha-tandoori(Punjabi in origin) is round in shape with multiple layers and traditionally prepared in a tandoor. Thus, Paratha, also known by different nomenclature like Parotta and Parantha, is basically a flat bread made from wheat flour(or maida) not containing any leaven i.e. a substance added to dough to make it ferment and rise. Such substances like yeast are not added to this Indian bread, though ingredients like potato, onion, vegetables etc. may be added for taste and flavour. 5. The applicant has ....
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....gal position that HSN Explanatory notes are fully applicable for classification of products under the Indian Tariff if the Indian Tariff heading is pari-materia the corresponding heading of HSN. Admittedly, HSN Code 1905 is para-materia heading/Tariff item 1905 of GST Tariff; that, therefore, unleavened breads like chapatti and paratha fall for classification under HSN Code 1905 and consequently under Tariff item No.1905 of GST Tariff. 8. The applicant has submitted that a reference may also be made to Rule 3(b) of the Rules for interpretation of the Tariff; that for mixture and composite goods consisting of different materials, it is laid down by virtue of Rule 3(b) that mixtures and composite goods consisting of different materials shall be classified as if they consisted of the material or component which gives them their essential character; that this rule is colloquially called 'predominance test of classification'; that the ingredient or material that predominates in terms of quantum or value or the like essentiality is the material or the ingredient that gives the essential character to mixtures or composite goods consisting of different materials; that in all the varieties....
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....ification No.1/2017-IT(Rate) dated 28-6-17? C. Personal Hearing: 10. The personal hearing (Video Conferencing) was accorded on 15-6-21. Shri Amal Dave, Advocate reiterated the contents of the application and emphasised that their product viz. Various varieties of Paratha is basically a flat unleavened bread. D. FINDINGS: 11. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and GGST Act, 2017 are in pari materia 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. 12. We have carefully considered all the submissions made by the applicant. 13. The applicant submitted that all the varieties of Paratha are basically 'Paratha' and therefore the product is to be treated as Paratha for the purpose of the present application. We have gone through the samples of 'packing covers' submitted by the applicant in respect of their product 'Paratha' namely Malabar Paratha, Mixed vegetable Paratha, Onion Paratha, Methi ....
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.... are ready to use food preparations. We find that applicant himself has admitted that their impugned products are not ready to eat but required certain process before consumption by humans. Also, we find that applicant's product is not akin to Khakra and plain chapatti or roti as they do not require any processing before consumption by humans and hence are ready to eat food preparations. We have already discussed in para 14 that Parathas are required to be heated on a pre-heated pan or a griddle as per the cooking instructions printed on the packing covers of these products in order to make them ready for consumption. Therefore, we hold that the applicant's contention is not tenable and their product cannot be classified under CTH 1905 of CTA 1975. 16. We refer HSN 21 and find that it covers Miscellaneous Edible Preparations and Heading 2106 covers food preparations not elsewhere specified or included. Heading 2106 reads as follows: 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 2106 10 00 - Protein concentrates and textured protein substances 2106 90 - Other: --- Soft dr....
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.... are not mentioned in the tariff item they merit classification at HSN 21069099 as "other". As per law, we refer to the General Rules for interpretation OF THE HARMONIZED SYSTEM. The General rules of interpretation for classification of goods reads as follows: 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: 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 article 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....
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....3(b) is also not applicable. 18. As per Rule 3(c), when goods cannot be classifiable under Rule 3(a) or 3(b), then they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Hence, HSN 2106 occurs last in numerical order vis-à-vis HSN 1905 and hence the heading 2106 would be the more appropriate classification. In view of the above, we hold that the varieties of the product 'Paratha' supplied by the applicant falls under Heading 2106 and specifically under Tariff item 21069099. 19. We now discuss the applicability of Entry No.99A of Schedule I to the Notification No.01/2017-Central Tax(Rate) dated 28-6-17, as amended vide Notification No.34/2017-Central Tax(Rate) dated 13-10-17, which specifies the applicable rate of 5% GST in respect of the goods covered under heading 1905 or 2106'. Entry No.99A of Schedule I of Notification No.01/2017-Central Tax(Rate) dated 28-6-17(as amended vide Notification No.34/2017-Central Tax(Rate) dated 13-10-17) reads as follows: Sl.No. Chapter / Heading / Subheading / Tariff item Description of Goods 99A 1905 or 2106 Khakhra, plain chapatti or roti"; 20. We find that GS....
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....1.1 To further clarify, we already noted Entry No.23 of Schedule-III of Notification No. 01/2017-Central Tax(Rate) dated 28-6-17 covers products under Heading 2106 and reads as follows: Sl.No. Chapter / Heading /Sub-heading / Tariff item Description of Goods 23 2106 All kinds of food mixes including instant food mixes, soft drink concentrates, Sharbat, Betel nut product known as "Supari", Sterilized or pasteurized millstone, ready to eat packaged food and milk containing edible nuts with sugar or other ingredients, Diabetic foods; [other than Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form]. 21.2 We find that, although the above entry pertains to Heading 2106, it does not include the product 'Paratha' of the applicant which is covered under the head 'Food preparations not elsewhere specified or included'. The aforementioned Notification was amended vide Notification No.27/2017-Central Tax(Rate) dated 30-9-17 which made the following amendments in respect of the above entry: "(i) in S. No. 23, in column (3), for the words and bracket "Diabetic foods;[other than Namkeens", the words and bracket, "Diabetic foods, Custard powder....