TaxTMI 
TaxTMI 
2021 (12) TMI 723
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....he CGST Act and KGST Act respectively). The Applicant is engaged in manufacture of spices, masalas, pickles and food products in the brand name of "SWASTIK". The applicant, among other things, also manufactures and sells "Rava Idli Mix" under the brand name of SWASTIK, classifying the same under tariff heading 2106 9099, on discharging GST at 18%. However the applicant felt that the said product merits classification under HSN 1106 and hence filed the instant application. 3. The applicant, in view of the above, sought advance ruling in respect of the following question: a. What is the HSN Code of the product "Rava Idli Mix" ? 4. Admissibility of the application: The question is on the issue of classification of the product "Rava Idli Mix", which is covered under "classification of any goods or services or both" and hence is admissible under Section 97(2)(a) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes the following facts relevant to the issue : 5.1 The Applicant stated that they are engaged in manufacture of masalas, pickles & other food products and they also manufacture & market the product "Rava Idli Mix", which is a mix of flour....
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....n as per the harmonized system of nomenclature. b) Chapter 11 does not cover i. Roasted-malt put up as coffee substitutes (heading 0901,or 2101); ii. Prepared flours, groats, meals or starches of heading 1901; iii. Corn flakes or other products of heading 1904; iv. Vegetables, prepared or preserved of heading 2001,2004 or 2005; v. Pharmaceutical products (chapter 30); or vi. Starches having the character of perfumery, cosmetic or toilet preparations (chapter 33). c) Products from the milling of the cereals listed in the table below fall in this chapter if they have, by weight on the dry product: i. A starch content (determined by the modified Ewers polarimetric method) exceeding that indicated in column (2); and ii. An ash content (after deduction of any added materials) not exceeding that indicated in column (3). Otherwise, they fall in heading 2302. However, germ of cereals, whole, rolled, flaked or ground, is always classified in heading 1104. d) Products falling in this chapter under the above provisions shall be classified in heading 1101 or 1102 if the percentage passing through....
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....syrup flavoured with fruit juices and concentrated fruit juice with added ingredients. c) Tariff item 2106 9099 includes sweet meats commonly known as "Mistans" or "Mithai" or called by any other name. They also include products commonly known as "Namkeens", "Mixtures", "Bujia", "Chabena" or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 6.3 The applicant with regard to the interpretation of classification of the product "Rava Idli Mix" stated as under: a) The applicant understands that one has to follow tariff act along with chapter notes, section notes and rules of interpretation for classifying the product. b) GST Act 2017 has not notified Tariff Act. However Notification No.1/2017-Central Tax, under sl.no.iii of explanation specifies that "Tariff item", "sub-heading", "heading" and "chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act 1975 (51 of 1975).-Further the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter....
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....d to add sour curds & other things as may be required, for preparing the Indian dish from the said mixed flour. The recipe of preparing Indian dish by using the said mixed flour is also described on packet itself. In nutshell, for preparing Indian dish, one has to carry our process prescribed on food packet. Further, significant process is required to be carried out on mixed flour to prepare final Indian dish. iii. Instant mix/ ready mix flour is by all means not a processed food, neither cooked food, nor semi-processed food, nor semi cooked food, nor preserved food or not a ready to eat food. Instant mixed flour is a flour of grains and pulses mixed with spices, condiments. iv. The description stated in heading 1106 suits for the instant mixed flour and hence there is no need to go under residual entry. h) The product being manufactured by the applicant consists of flour of grains and pulses equivalent to 90% of total quantity in the packet. There is no further processing of flours except mixing of flours in different percentages. i) The classification of the product depends on the primary ingredient/major raw materials of the product, as no new....
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.... 11 of Customs Tariff Act 1975. p) In the case of M.T.R. Foods Pvt. Ltd., Ahmedabad, vide determination order No.2013/D/197/219 dated 20.12.2013, it is held and determined that instant mix products like Rava Idli floour are covered by entry 12 (ii) of Schedule-I to the GVAT Act, 2003 and are tax free goods. q) Independent laboratory has provided the following report, as per the said report the ash content is more than the specified percentage, of 2.5%, in chapter notes of Chapter 11. Cereal Starch Content Ash Content Rate of passage through a sieve with an aperture of 315 micrometres (Microns) 500 Micrometres (Microns) (1) (2) (3) (4) (5) Wheat & Rye 60.08% 3.32 95.5% -- r) As per chapter note 3 of chapter 11, Rava Idli Mix could fall under chapter 2302 and the applicable rate of tax is 5% as per notification 01/ 2017-Central Tax. 7. Ms. Neeharika Inti, Deputy Commissioner of Central Tax, Division-6, Bengaluru South Commissionerate, Bengaluru, vide their letter dated 17.09.2021, offered comments on the question raised by the applicant inter alia stating that the product in question is a mix of various ing....
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....he Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 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 this notification. 13. The applicant, though at present are classifying the impugned product under tariff heading 2106 9090, filed the instant application contending that the impugned product is classifiable under tariff heading 1106 1010. We proceed to examine and discuss the classification of the impugned product. The applicant submitted that the impugned product is prepared/manufactured by mixing certain flours of cereals/grains & pulses in certain proportion added with certain spices and condiments. However, the applicant has neither indicated the specific constituents (grains and pulses) nor the proportion in which they were mixed. Applicant submitted that the subject product is an instant ready mix, which needs to be mixed with sour curd and other ingredient as required for preparing rava idlis. 14. Chapter 11 covers products of the milling industry; malt; starches; ....
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....th the impugned product. 15. Further tariff heading 1106 covers flour, meal and powder of (i) the dried leguminous vegetables of heading 0713, (ii) of sago or of roots or tubers of heading 0714 or (iii) of the products of chapter 8 as under: Tariff Item Description of goods 1106 FLOUR, MEAL AND POWDER OF THE DRIED LEGUMINOUS VEGETABLES OF HEADING 0713, OF SAGO OR OF ROOTS OR TUBERS OF HEADING 0714 OR OF THE PRODUCTS OF CHAPTER 8 110610 - Of the dried leguminous vegetables of heading 0713 11061010 - Guar Meal 11061090 - Others 110620 - Of sago or of roots or tubers of heading 0714: 11062010 --- Of sago 11062020 --- Of manioc (cassava) 11062090 --- Of other roots and tubers 110630 - Of the products of Chapter 8 : 11063010 --- Of tamarind 11063020 --- Of singoda 11063030 --- Mango flour 11063090 --- Other From the above it is clear that Tariff heading 1106 covers flour, meal and powder of individual raw materials of either leguminous vegetables(of heading 0713) or roots or tubers(of heading 0714) or of products of Chapter 8. Like other ta....