TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 1156
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....he Act shall be binding only (a). On the applicant who had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling; (b). On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said advance ruling have changed. 4. Under Section 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Se....
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....cant has stated that the applicant's products fall under the chapter heading 2106 attracting GST 5% as per notification no. 41/2017, dated 14.11.2017 through their written submissions. S.No HSN Code Particulars 1 0713 Dried Leguminous Vegetables, Shelled, Whether Or Not Skinned Or Split 2 1106 Flour, of the dried leguminous vegetables of heading 0713 (pulses) [other than guar meal 1106 10 10 and guar gum refined split 1106 10 90], of sago or of roots or tubers of heading 0714 or of the products of Chapter 8 i.e. of tamarind, of singoda, mango flour, etc. [other than those put up in unit container and bearing a registered brand name] 3 2106 Food preparations not elsewhere specified or included i.e. Protein concentrates and textured protein substances, Sugar- syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup, Compound preparations for making non-alcoholic beverages, Food flavouring material, Churna for pan, Custard powder 2.4 They added that the HSN code 0713 related to the dried leguminous vegetables and its flour of leguminous plants falling under HSN Code 1106, that th....
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.... to be taxed at 5% only since it is branded; that this finding and facts are exactly similar to their product. 2.8 The appellant stated further that the Ready-to-Eat (RTE) means the food is already cooked and there is no need for further cooking; Ready-to-Cook (RTC) means it's still raw but has been portioned & prepped as it is freshly frozen; the cooking needs to be done at home following the instructions that are given, Ready to eat applies to any product intended for human consumption without further preparation steps; thus it means that the products having sufficiently cooked so that they are safe to eat as they are with no further preparation. But in the case of ready to cook, cooking needs to done at home following the instructions that are given as recipe and printed in the packing label itself. They given examples for 1, Ready to eat foods examples: Readymade parata Readymade popcorn Readymade Chappathi (Kakra-dry chappathi) These products are just fry and heat without adding further raw materials before eating. 2. Ready to cook foods examples: Dosa Mix Idly Mix Fenugreek Kazhi Mix Uzhunthakali Mavoo Vadai Mavoo Porridge Porridge is a traditio....
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..... Oats Idly Mix c. Masala Idly Mix d. Wheat Rava Idly Mix e. Rava Idly Mix f. Ragi and Bajra Idly Mix g. Rice Idly Mix HSN 2106 as per the Entry No.23 of Schedule-Ill of Notification No. 1/2017-C.T. (Rate), Dated 28.06.2017 and SGST entry no.23 of Schedule-III of Notification No. II (2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62, dated 29.06.2017 HSN 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 as per Entry No.59 falling under HSN code 1106 and Entry no.25 falling under HSN Code 0713 Schedule-I of Notification No. 1/2017-C. T. (Rate), Dated 28.06.2017 and as per circular no. 80, dated 31.12.2018 3 Tiffen Mixes a. Adai Mavoo Mix b. Millet Adai Mix c. Kitchadi Mix d. Parota Mix e. Venpongal Mix f. uzhunthakali Mavoo Mix g. Kesari Mix h. Payasam Mix I. Vadai Mavoo j. Masai Vadai Mavoo Mix k. Pattanam Pakoda Mix l. Ready Idiyappam m. Bajji Mix n. Wheat Khara Bath Mix o. Rice Upma Mix p. Fenugreek Kazhi Mix HSN 2106 as per the Entry No.23 of Schedule-III of Notification No. 1/2017-C.T. (Rate), Dated 28.06.2017 and SGST entry no.23 of Schedule-III of Not....
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....he applicable HSN CODE. 4. The AAR pronounced the following rulings: The classification of the products is CTH 2106 and the applicable rate of tax is 9%CGST as per entry no.23 of Schedule-Ill of Notification No. l/2017-C.T.(Rate) dated 28.06.2017 and 9% SGST as per entry no. 23 of Schedule-Ill of Notification No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended and the same, item-wise is tabulated as under: S/No. Name of the Commodity HSN Tax Dosai Mix- 1 Krishna Rava Dosai Mixes 2106 18% 2 Krishna Special Rava Dosai Mixes 2106 18% 3 Krishna Ragirava Dosai Mix 200gms 2106 18% 4 Sola Dosai Mix 500gms 2106 18% 5 Kambu Dosai Mix 500gms 2106 18% 6 Ragi Dosa Mix 500gm 2106 18% 7 Multigrain Dosai Mix 200gm 2106 18% 8 Horse Gram Dosai Mix 200gm 2106 18% 9 Green Leaf Dosai Mix 200gm 2106 18% Idli Mixes- 10 Kanchipuram Idly Mix 200gms 2106 18% 11 Oats Idly Mix 200gm 2106 18% 12 Masala Idly Mix 200gm 2106 18% 13 Wheat Rava Idly Mix (Box)200gm 2106 18% 14 Rava Idly Mix 200 / 500gm 2106 18% 15 Ragi and Bajra Idly Mix 500gm 2106 18% 16 Rice Idly Mix 500 gm 2106 18% Tiffin Mixes 17 Adai Mavoo Mix ....
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....empted category. The Authority for Advance Ruling failed to appreciate the real nature and intent of the appellant's product, which is manufactured and sold by them for the past several years, which is not liable to any tax either by sales tax authorities and central excise authorities, even after the same was put forth by the appellant at the time of personal hearing. The Authority further failed to appreciate the intention of the government and council to grant exemption on the food preparation. Hence this present appeal. Even according to the central excise tariff the appellants commodity fall under chapter 2106 and the lower authority failed to consider such discussion and it was elaborately discussed in the Gujarat Advance Ruling cited by them. * They are a registered dealer under the GST Act having GSTIN No.33AAFPR8076ElZK; they are manufacturing and selling the mixture of flour of grains/cereals, pulses mixed with spices and condiments, that their products are mainly used for preparing Indian Dishes like Idly Mixes, Dosai Mixes, Tiffen Mixes (Adai Mavoo, Millet Adai Mix, Uzhunthakali Mavoo, Ready Idiyappam, Bajji Mix), Health Mixes and Porridge Mixes. These mixtures of....
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....acked in sealed packing of 175 gms 200/500 grams and 1 kg. On packing material, preparation process/recipe is printed to prepare food from such instant mix. l. 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 and flavours. * After introduction of new GST regime they were confused about the classification of goods under the GST schedule and its applicable rate of tax; some of the manufacturer having similar line of business charging rate of tax at 18% and some of them charging 5% and also as exempted. They have furnished the probable classification of HSN codes. * They are manufacturer and seller of ready to prepare the cook products like in the name of "KRISHNA", Dosai Mixes, Idly Mix, Tiffen Mix, Sweet Mixes, Health Mix and also Porridge Mixes; that the preparations of above food products they have mixture the various ingredients (commodities in various rate of tax slabs) used for the manufacturing and sold as 175gm, 200gm, 500gm and lKg packet. The name of product....
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....bakers' wares of heading 1905] 4 2106 Food preparations not elsewhere specified or included i.e. Protein concentrates and textured protein substances, Sugar- syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup, Compound preparations for making non-alcoholic beverages, Food flavouring material, Churna for pan, Custard powder 1. Khaman mix flour, Gota mix flour, Handwa mix flour, Dahi wada mix flour, Dalwada mix flour, Meduvada mix flour, Pudla mix flour, Moong bhajiya mix flour, Chorafali mix flour, Bhajiya mix flour, Dhokla mix flour, Idli mix flour and Dosa mix flour are classifiable under subheading 11061000 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). They appear at Entry No.59 of Schedule-! Of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the GST liability on all these products is 5% (2.5% CGST + 2.5% SGST). 2 Upma mix flour, Rava idli mix flour and muthiya mix flour are classifiable under sub-heading 23023000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) whereas Khichu mix flour is classifiable under subheading 2....
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....ling in the case of Mahalakshmi Stores. Further the major ingredients of the cereal flour mixed with little amount of spice flour are also called as flour mix in the market. Accordingly to the clarification of sattu mavoo mentioned in the Circular No.80 dated 31.12.2018 given by the Central Board of Indirect Taxes that the flour of dal and cereal even after adding some spices with salt remains to be the flour of pulses and grams or flour of cereals. For the reason that those products were mainly used for preparing the Indian Dishes. * The similarities of the products dealt in Gujarat Advance Ruling with that of applicant products. M/s. Dipakkumar Kantilal Chotai In GUJ/GAAR/R/43/2020,dt.30.07.2020. Product Name Ingredients Rate of Tax Krishna Bhavan Foods and Sweets, Trichy Ingredients 1. DOSAI MIXES a. Khaman Mix Flour b. Pudla Mix Flour Gram Flour, Salt etc. Gram Flour, Salt, Cumin Powder, Turmeric, etc 5% a. Krishna Rava Dosa Mix Flour b. Krishna Special Rava Dosa Mix Flour c. Krishna Ragirava Dosa Mix Flour Rice Flour, Wheat Flour, Salt Cumin, Pepper etc. Rice Flour, Wheat Flour, Salt Cumin, Pepper etc. Rice Flour, Wheat Flour, Salt Cumin, Pepper etc. Rice Flour....
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.... Uzhunthakali Mavoo Broken Green dhal, Gram, Rice, etc. g. Upma Mix Flour Granule, sugar, etc. 5% g. Krishna Kesari Mix & Payasam Mix Grain, Sugar, etc. h. Dhokla Mix Flour i. Gota Mix Flour Dal, Asafoetida Sodium Bicarbonate, Salt etc. Dal, Asafoetida Sodium Carbonate, Salt, etc. 5% . . 5% h. Krishna Vadai Mavoo & Masal Vadai Mavoo i. Krishna Pattanam Pakoda Mix, Ready Idiyappam & Bajji Mix Urid Dhal, Asafoetida, Salt, Sodium Bicarbonate, etc. Gram Dhal Flour, Rice Flour, Asafoetida, Sodium Bicarbonate, Salt; etc. j. Upma Mix Four k. Dhokla Mix Flour Wheat Granule, Dal, Green Chilli, Salt, Hydrogenated Fat, Mustard, etc. Rice, Dal, Asafoetida, Salt, etc. 5% 5% j.KrishnaWheat Khara Bath Mix k. Rice Upma Mix & Fenugreek Kazhi Mix Broken wheat, Gram Dhal and Urid Dhal, Green Chilly, Salt, Hydrogenated Fat, Mustard, etc. Rice, Toor Dhal, GramDhal, Urid Dhal, Asafoetida, Salt etc. 4. HEALTH MIXES a. Upma Mix Flour Wheat Granule, Gram, Dhal Sugar, etc. 5% a. Krishna Health Mavoo Mix, Sprout ed Roasted Health Mix, Sprouted Roasted Health Mix (Badam) & Sprouted Roasted Health Mix (Chaco) Grains (Ragi, Barley, wheat,....
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....d cereals. HSN code 1106 includes the flour, meal and powder made from peas, beans or lentils (dried leguminous vegetables falling under 0713). Such flour improved by the addition of very small amounts of additives continues to be classified under HSN code 1106. If unbranded, it attracts Nil GST (S. No. 78 of notification No. 2/20 17-Central Tax (Rate) dated 28.06.2017) and if branded and packed it attracts 5% GST (S. No. 59 of schedule I of notification No. 1/20 17- Central Taxes (Rate) dated 28. 06.2017)." Let us examine the contentions of the circular whether it would squarely applicable to the products manufactured and sold by the appellant. First it is stated that mixture of flour of ground pulses and cereals falls under HSN 1106 and second that such flour improved by the addition of very small amounts of additives continues to be classified under HSN code 1106. The products of the appellant can be classified broadly as follows:: (i) Dosai Mixes (ii) Idly Mixes (iii) Tiffen Mixes (iv) Health Mix (v) Porridge Mixes The composition of the various products under the category "dosai mixes'' as declared by the appellant are as under: a. Krishna Rava Dosai Mix....
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.... Salt 2501 0% 1.5 The composition of the various products under the category "Idly mixes" as declared by the appellant: a. "KRISHNA" Kanchipuram Idly Mix SI. No Name of the commodity HSN Tax % of mixing 1 Rice 1006 0% 90 2 Black Gram Dhal 0713 0% 4 3 Pepper 904 5% 0.6 4 Cumin 909 5% 0.4 5 Sodium BI Carbonate E500 2836 5% 0.5 6 Hydrogenated Fat 1517 5% 1.5 7 Salt 2501 0% 1.5 8 Dried Yeast 2102 12% 1.5 b. "KRISHNA" Oats Idly Mix SI. No Name of the commodity HSN Tax % of mixing 1 Rice 1006 0% 70 2 Black Gram Dhal 0713 0% 5 3 Pepper 904 5% 3 4 Cumin 909 5% 0.5 5 Sodium BI Carbonate E500 2836 5% 1.5 6 Hydrogenated Fat 1517 5% 6 7 Salt 2501 0% 2 8 Dried Yeast 2102 12% 2 9 Oats 1004 5% 10 c. "KRISHNA" Masala Idly Mix SI. No Name of the commodity HSN Tax % of mixing 1 Sooji 1104 5 87 2 Bengal Gram Dhal 0713 0 4 3 Hydrogenated fat(edible vegetable fat), 1517 5% 3 4 Urid Dhal 0713 0 1 5 Sodium BI Carbonate E500 2836 5% 0.5 6 Hydrogenated Fat 1517 5 1.5 7 Mustard 1207 5 0.5 8 Asafoetida 1301 5 0.3 9 Turmeric 0910 5 0.2 10 Cashew Nut 801....
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....Tax % of mixing 1 Sooji 11.04 5% 60 2 Vermicelli 1902 5% 29 3 Gram Dhal 0713 0% 3 4 Mustard 1207 5% 2 5 Turmeric 0910 5% 0.1 6 Cashew Nut . 801 5% 0.6 7 Salt 2501 0% 0.3 8 Vegetable Fat 1517 5% 5 d. "KRISHNA" Parota Mix SI. No Name of the commodity HSN Tax % of mixing 1 Processed Maida 1101 0% 90 2 Salt 2501 0% 1 3 Hydrogenated Fat 1517 5% 8 4 Milk solids 0404 5% 0.5 5 Sodium Bi Carbonate E500 2836 5% 0.25 6 Malic Acid E296 2918 18% 0.25 e. "KRISHNA" Venpongal Mix SI. No Name of the commodity HSN Tax % of mixing 1 Rice 1006 0% 50 2 Broken Green Dhal 0713 0% 32 3 Pepper 0904 5% 5 4 Cummin 909 5% 4 5 Turmeric 0910 5% 1.5 6 Cashew Nut 801 5% 1 7 Salt 2501 0% 2 8 Vegetable Fat 1517 5% 4 9 Curry Leaves 1211 0% 0.5 f. "KRISHNA" Uzhunthakali Mavoo SI. No Name of the commodity HSN Tax % of mixing 1 Broken Black Gram 0713 0% 40 2 Broken Green Dhal 0713 0% 50 3 Rice 1006 0% 7.5 4 Cardamom 908 5% 2.5 g. "KRISHNA" Kesari Mix 200gm SI. No Name of the commodity HSN Tax % of mixing 1 Sooji 1104 5% 80 2 Sugar 1701 5% 17 3 El....
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....d Dhal 0713 0% 1.5 4 Jeera 0909 5% 0.2 5 Pepper 0904 5% 0.2 6 Asafoetida 0904 5% 0.2 7 Green Chilly 0709 0% 0.2 8 Salt 2501 0% 0.2 p. "KRISHNA" Fenugreek Kazhi Mix SI. No Name of the commodity HSN Tax % of mixing 1 Rice 1006 0% 59 2 Urid Dhal 0713 0% 35 3 Fenugreek 0910 5% 5 4 Cardamom 0908 5% 0.2 5 Salt 2501 0% 0.8 The composition of the various products under the category "Health mixes" as declared by the appellant: a. "KRISHNA" Health Mavoo Mix SI. No Name of the commodity HSN Tax % of mixing 1 Ragi 1008 0% 20 2 Barley 1003 0% 10 3 Wheat 1001 0% 10 4 Fired Gram 0713 0% 10 5 Corn 1005 0% 8 6 Groundnut 1202 0% 12 7 Rice 1006 0% 13 8 Moong Dhal 0713 0% 7 9 Sago 1108 5% 5 10 Millet 1008 0% 2.5 11 Cardamom 908 5% 0.3 12 Badam 801 5% 0.7 13 Cashew 801 5% 0.5 14 Dry Ginger 0910 5% 1 b. "KRISHNA'' Sprouted Roasted Health Mix SI. No Name of the commodity HSN Tax % of mixing 1 Ragi 1008 0% 10 2 Barley 1003 0% 13 3 Bajra 1008 0% 13 4 Sorghum 1007 0% 20 5 Green Gram & Fried 0713 0% 17 6 Rice 1006 0% 17 7 Dry ....
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.... g. "KRISHNA" Little Rice & Foxtail Rice Porridge Mix 100gm S.No Name of the Commodity HSN Tax % of Mixing 1 Little (Samai Rice) 1008 0% 35 2 Foxtail (Thinai Rice) 1008 0% 35 3 Raw Rice 1006 0% 8 4 Gram Dhal 0713 0% 12 5 Sago 1108 5% 7 6 Salt 2501 0% 3 7 Salt 2501 0% 2 h. "KRISHNA" Red Rice & Bajra Porridge Mix 100gm S.No Name of the Commodity HSN Tax % of Mixing 1 Red Rice 1006 0% 30 2 Bajra 1008 0% 40 3 Gram Dhal 0713 0% 10 4 Bengal Gram Dhal 0713 0% 10 5 Rice 1006 0% 7.5 6 Salt 2501 0% 2.5 i. "KIRISHNA" Ragi & Hand Grinded Rice Porridge Mix 100gm S.No Name of the Commodity HSN Tax % of Mixing 1 Hand Grind Rice 1006 0% 60 2 Rice 1006 0% 10 3 Ragi 1008 0% 10 4 Puffed Rice 1904 0% 5 5 Barley 1003 0% 10 6 Toor Dhal 0713 0% 3 7 Salt 2501 0% 2 j. "KRISHNA" Yellow Corn & Rice Porridge Mix 100gm S.No Name of the Commodity HSN Tax % of Mixing 1 Yellow Corn 1005 0% 80 2 Boil Rice 1006 0% 10 3 Rice 1006 0% 8 4 Sago 1108 5% 1 5 Salt 2501 0% 1 k. "KRISHNA" Kodu Rice & Sorghum Porridge Mix: S.No Name of the Commodity HSN Tax % of Mixin....
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....ion Rate 25/ Sch.I 0713 Dried leguminous vegetables, shelled, whether or not skinned or split put up in unit container and,- (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE 5% 61./ Sch.I 0713 Guar gum refined split 5% 59./ Sch.I 1106 Meal and powder of the dried leguminous vegetables of heading 0713 (pulses) [other than guar meal 1106 10 10 and guar gum refined split 3inserted[0713], of sago or of roots or tubers of heading 0714 or of the products of Chapter 8, put up in unit container and, - (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE]] 5% 59./ Sch.I 1106 Meal and powder of the dried leguminous vegetables of heading 0713 (pulse....
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....betic foods 12% 23./Sch III 2106 Food preparations not elsewhere specified or included [other than roasted gram, sweetmeats, batters including idli/dosa batter, namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, khakhra, chutney powder, diabetic foods] 18% Thus the above explanatory note and entry in serial number 59 of Schedule I of Notification No. 1/2017- Central Tax Rate, dated 28-6-2017speaks about the flours of cereals and dried leguminous vegetables. Whereas the products of the appellants do contain the flour and the same is not meant for supply as flour but meant as dosai mix, idly mix, vada mix, tiffin mix, health mix and porridge mix which are the products for human consumption by way of cooking as directed in the container label. Hence these products are not mere mixture of dried leguminous vegetable or cereals and hence not classifiable under HSN 1106. 7.2 The explanatory notes under CTH 2106 reads as follows: 21.06 - Food preparations not elsewhere specified or included. 2106.10 - Protein concentrates and textured protein substances 2106.90 - Other Provided that they are not covered by any other heading of t....