AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1101
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....r, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MPGST Act would be mentioned as being under the GST Act. 2. BRIEF FACTS OF THE CASE AND SUBMISSION OF THE APPLICANTS IN THEIR APPLICATION IS AS UNDER - 2.1. The Applicant is engaged in the manufacture and supply of confectionery and dairy/sweet products. The applicant primarily manufactures dairy/sweet products and confectionery items like milk chocolates, milk compound chocolates, candies and lollypops. 2.2. One of the products that the applicant manufactures and sells the same under the brand name "Anna Malai Mithai". As per the applicant, it is "Rabdi" recognized as a 'Mithai' or 'Misthan' in the common parlance. It contains the following ingredients: i. Sugar ii. Vegetable Fats iii. Skimmed Milk Powder iv. Whey Powder v. Emulsifiers vi. Flavours 2.3. The product "Anna Malai Mithai" is marketed in small sachets of around 3.5 to 4 grams each.58 such sachets are then packed into a larger pack which are sold to distributors and retailers and the end customer then buys such small sachets for consumption. T....
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....the market as 'Rabdi' and our product is that our product is packed in small sized sachets. We submit that merely packing the product in smaller quantities does not alter the inherent nature or identity of the product. Thus. even if it is packed in sachets which are easily marketable, it still remains a sweet meat. Packing the said product in such small sachets is useful in consuming the product readily. 4. The Applicant is marketing the said product as Mithai which is also evident from the name of our product ('Anna Malai Milhai'). 5. Further, the CBEC. vide its FAQ on classification dated 29-9-2017, clarified that products like halwa. barfi (i.e. Khoa product), laddus. falling under HS Code 2106 are sweet meats and attract 5% GST. An abstract of the said FAQs is as follows: What is the HS Code and GST rate on chana products, halwa, barfi (i.e. khoa product), laddu? Products like halwa, barfi (i.e. khoa product), laddus falling under HS code 2106. are sweetmeats and attract 5% GST. Accordingly, we submit that the above FAQ supports our view that our product, being a sweet meat, is classifiable under HSN 2106 6. The Applicant further submitted that we have got our....
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....y subjected to addition of certain flavours to skimmed milk powder, whey powder and sugar. Thus. the impugned product may be considered for classification under Chapter Heading 0404 90 00 since it contains natural milk constituents i.e. skimmed milk powder, whey powder along with sugar. D. Further the applicant also in support of the argument gave example of the ruling passed by this authority in M/s. ITLIAN EDIBLES PVT. LTD. Dated 18-09-2018 4.2. The Applicant also gave a sample of the impugned product and also photograph of the product, how it's looks like 4.3. The applicant on the basis of above argument is of view that their product "Anna Malai Mithai" is classifiable under the HSN 2106 90 99 and chargeable to GST @ 5% (2.5% CGST 2.5% SGST) 5. DISCUSSIONS AND FINDINGS: The arguments and assertions made by the applicant along with supporting case laws and documents in support of such claims are examined, and the following are noted: 5.1. We have considered the submissions made by the applicant in the application and the pleadings on behalf of the Applicant made during the course of personal hearing. At the outset, we find that the issue raised in the Applicatio....
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....SN is for 'Sugar & Sugar Confectionery'. While 1701 to 1703 headings relate to Sugars in different forms, the Heading 1704 mentions Sugar Confectionery. Sugar Confectionery has nowhere been specifically defined under the GST law or under HSN. However, going by the trade parlance and prevailing practice, the Sugar Confectionery has been classified as under: 1704 Sugar Confectionery (Including white chocolate), not containing cocoa 1704 10 00 - Chewing Gum, whether or not sugar coated 1704 90 - Other: 1704 90 10 --- Jelly Confectionery 1704 90 20 --- Boiled Sweets, whether or not filled 1704 90 30 --- Toffees, Caramels and similar sweets 1704 90 90 --- Others 5.6. Now, putting the impugned product to test against each of the entries above, we find that the product 'Anna Malai Mithai' cannot be terms as 'Chewing Gum' (1704 10 00) or Jelly Confectionery (1704 90 10) or Boiled Sweet (1704 90 20) or Toffee, caramel etc (1704 90 30). Clearly the product is neither a gum nor boiled sweet nor toffee or caramel. That leaves residual entry 'Others' (1704 90 90) if at all the impugned product is to be brought under the pu....
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....er depicting them as a single category of food items. This signifies that such items fall under similar category of food products i.e., traditional Indian sweets. Hence, milk-based sweets are classified as traditional Indian sweets and should therefore be classified in the same manner as traditional Indian sweets are generally classified. 5.11. At this note, we proceed to examine the impugned product vis-a-vis heading 2106. We observe that Chapter 21 essentially covers 'Miscellaneous Edible Products'. Obviously, the term 'Miscellaneous' indicates that this particular chapter would contain all such edible products which are not specifically covered elsewhere under the Tariff. The Chapter Headings further describes various edible preparations such as extracts of Coffee, tea, Yeast, Soups, broths, Sauces etc under Heading 2101 to 2105. Further as is the convention, heading 2106 has been given to include all those items which are not elsewhere specified. Furthermore, 2106 further sub-divides various edible items like Protein Concentrates, Pan Masala, Sharbats, Supari, Custard Powder etc. under Sub-headings 21061000 to 21069080 and to conclude there is a residual entry as 'Others' un....