TaxTMI 
TaxTMI 
2023 (1) TMI 496
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....):- • Raw potatoes shall be fed into clearing machine to remove stones heavy materials. Then machine-based grading shall be done to remove the small size potatoes. Then machine-based washing shall be done to remove dust and dirt from potatoes. Then Peeling machine shall remove the thin layer of skin from the potatoes and again a machine based washing shall be done to completely remove the peel from potato. • During this process extra water and starch shall be extracted, as a by-product. Then slicing machine shall slice, the peeled potatoes into uniform slices and such slices shall be passed from vibrator machine to again remove extra water and starch from sliced potatoes. • Then potato slices shall be fried in fryer machine in continuous deep fry at 180-187 °C temperature, which shall convert the potato slices into fried potato chips. Then manual sorting of damaged chips shall be done and then seasoning with various masala or flavors shall be done of such fried chips and then final packing of such potato chips shall be done in unbranded plastic bags, which it to be sold to customers. II. Potato Sev (Aloo Sev) :- • Fri....
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....d dough and transferred to frying machine. • Then dough extrusion machine extrudes sieve into fryer machine where deep frying in vegetable oil is done at 175 °c temperature for 15 seconds. • Then it is put on de-oiling and cooling conveyer belt and passed through tumbler and seasoning applicator to add various spices flavors and then packed in plastic unbranded bags of different size and weights . which is to be sold to customers. V. Sev Mamara (Roasted Puffed Rice with Nylon Sev):- • Frist of all Sorting of raw puffed rice is done to remove damage & faulted material. • Then puffed rice is roasted on medium heat. • Then roasted puffed rice are polished with hot oil uniformly. • Then roasted and polished puffed rice material is transfered into the seasoning drum and seasoning of various flavors is done. • Then pre-prepared nylon sev is mixed with the seasoned and roasted puffed rice as per standard ratio in mixing drum. • Then it is packed in plastic unbranded bags of different size and weights, which is to be sold to customers. VI. Fried Chana Daal (Split Be....
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....oling Collect into Clean Bucket with Liner 4. Sada Sev Make Dry mix of Whit Salt, Gram Besan, Starch and Pea Floor Blend Prepare Dry mix With Edible Oil Make dough into dough Mixer (Dry mix + Water) Take into Tray Transfer to Batch Fryer for Frying QC Person Testing Bhatti Oil FFA, PV Extrusion from Extruder Sieve into fryer Heat oil Frying at 175° +/- 2°C for 70 +/- 10 Second Collect into Clean Bucket with Liner 5. Bhavnagri Gathiya Make dry mix of White Salt, Baking Soda, Gram Flour, Pea Floor, Ajwain, and Starch Powder Mixing Of Drymix with Edible Oil Make dough into dough Mixer (Drymix + Water) Take into Tray Tranfer to Fryer for Frying QC Person Testing Bhatti Oil FFA, PV Extrusion from Extruder Seive into fryer Heat oil Frying at 178° +/- 2°C for 100 +/- 20 Second Collect into Clean Bucket with Liner 6. Bundi Make Dry mix of Pea Floor, Gram Flour Coarse Make Slurry into dough Mixer (Dry mix + Water) Take into Tray Transfer to Fryer for Frying QC Person Testing Bhatti Oil FFA, PV Drop the prepared Slurry by Sieve into fryer Heat oil Frying at 178° +/- 2°C for 180 +/- ....
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....ury snack or dish" & savoury means "(of food) belonging to the category that is salty or spicy rather than sweet." 3.3 In general, Namkeen is the Hindi word used to describe a savory flavor. The word namkeen is derived from the word namak (meaning salt). It is also used as a generic term to describe savory snack foods. Thus, any salty and spicy snacks items are commonly known as "Namkeen". 3.4 The applicant has referred the relevant para of CIRCULAR NO. 113/32/2019-GST [F.NO. 354/131/2019-TRU], DATED 11-10-2019 ISSUED FOR CLARIFICATION REGARDING GST RATES & CLASSIFICATION is also reproduced here under : "..... 3. Classification of leguminous vegetables when subject to mild heat treatment (parching): 3.1 Doubts have been raised whether mild heat treatment of leguminous vegetables (such as gram) would lead to change in classification. 3.2 Dried leguminous vegetables are classified under HS code 0713. As per the explanatory memorandum to the HS 2017, the heading 0713 covers leguminous vegetables of heading 0708 'which have been dried, and shelled, of a kind used for human or animal consumption (e.g., peas, chickpeas etc.). They may have undergone modera....
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....market as "Namkeen" items only and it is considered as savory snacks in general. Thus, it shall get squarely covered under the chapter note no 6 of chapter 21 of GST Tariff and thus should be classified under tariff item no 2106 90 99. 5. 1 The applicant has submitted that they intend to sell manufactured salted and masala potato chips without any brand name , it shall be covered under sl. no 101A of schedule -I of Notification No 01/2017- Central Tax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. For Question No: 2 (For Aloo Sev [Potato Sev]) 2.1 As per the manufacturing process described in statement of facts, it is clear that Aloo Sev (Potato Sev) is manufactured with various raw materials like Longi Mirch (Eagle Eye Chilly), White Salt, Turmeric powder, Potato Flakes, Gram flour, Starch powder and Rice flour. Thus, the final product is totally different from anyone specific basic ingredient used to manufacture the same. 2.2 The Final product of Aloo Sev (Potato Sev) is being sold in market as "Namkeen" only, and commonly it is used a savory snacks only. And as discussed in detailed in Justification Reply for Question no -1 above, when the "Na....
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....7- Central Tax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. 4.3 Thus "Sing Bhujiya" shall be classified under tariff item No 2106 90 99 and is liable for GST rate of 5 % when sold without brand name. For Question No: 5 (For Sev Mamara [Roasted Puffed Rice mixed with Nylon Sev]: 5.1 As per the manufacturing process described in statement of facts, it is clear that Sev Mamara [Roasted Puffed Rice mixed with Nylon Sev] is manufactured with various raw materials like puffed rice, ready Nylon Sev and various spices. Puffed rice and Nylon sev are also one kind of finished products which are manufactured from other food items like rice and gram flour. 5.2 The Final product of Sev Mamara [Roasted Puffed Rice mixed with Nylon Sev] is being sold in market as "Namkeen" or "Mixture" only, and commonly it is used a savory snacks only. And as discussed in detailed in Justification Reply for Question no -1 above, when the "Namkeen", "Mixture" or similar other edible preparations in ready for consumption form are sold without brand name, then it shall be classified under entry No 101 A of schedule -I of Notification No 01/2017- Central Tax (Rate) -dated 26.06.....
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....itha Chevda Mixture): 8.1 As per the manufacturing process described in statement of facts, it is clear that Khata Mitha Chevda Mixture is manufactured with various raw materials like chana daal, green peas, masoor daal, Sev, Gathiya, Bundi , Rice flakes, Red Peanuts and various spices. All the raw materials used are also one kind of finished products which are manufactured from other food items. Thus, the final product is totally different from anyone specific basic ingredient used to manufacture the same. 8.2 The Final product of Khata Mitha Chevda Mixture is being sold in market as "Mixture" or "Chebana" only, and commonly it is used a savory snacks only. And as discussed in detailed in Justification Reply for Question no -1 above, when the "Mixture" or "Chebana" or similar other edible preparations in ready for consumption form are sold without brand name, then it shall be classified under entry No 101 A of schedule -1 of Notification No 01/2017- Central Tax (Rate) - dated 26.06.20217 and thus shall be liable to GST rate of 5%. 8.3 Thus, "Khata Mitha Chevda Mixture" shall be classified under tariff item No 2106 90 99 and is liable for GST rate of 5 % when sold without ....
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....Sev Mamara (Roasted Puffed Rice mixed with Nylon Sev)? and if it is sold without brand name, what GST rate shall be applicable on the same ? 6. What is the correct tariff classification for "Chana Daal (Fried Split Bengal Gram)"? and if it is sold without brand name, what GST rate shall be applicable on the same? 7. What is the correct tariff classification for "Gathiya"? and if it is sold without brand name, what GST rate shall be applicable on the same? 8. What is the correct tariff classification for "Khatta Mitha Chevda Mixture"? and if it is sold without brand name, what GST rate shall be applicable on the same? 9. What is the correct tariff classification for "potato starch"? and what GST rate shall be applicable on the same? Personal Hearing: 5. Personal hearing granted on 26-9-22 was attended by Shri Meet M Jadawala, CA and he reiterated the submission. Revenue's Submission: 6. Revenue has neither submitted its comments nor appeared for hearing. FINDINGS: 7. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by authorised signatory, during ....
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.... "Bhujia", "Chabena" or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients. 12. The product which are commonly known as Namkeens", "mixtures", "Bhujia", "Chabena" or called by any other name shall be classified under Tariff Item 210690900. The term NAMKEEN is not defined under the CGST Act. So, common parlance test has to be applied. In common/commercial parlance, NAMKEEN means SAVOURY SNACK that is ready to eat and is a food product prepared by applying salt, masala and the like. Further, we refer the DICTIONARY MEANING of NAMKEEN: https://www.lexio.com/defmition/namkeen - NOUN namkeen. namkeens - Indian -A small savory snack or dish. 12.1 The Hon'ble CESTAT, New Delhi has observed in Paragraph 8 of its order reported as Pepsico India Holidings (P.) Ltd. v. CCE & ST 2015 (318) ELT 278 (Tri - Delhi) that salted food preparations are "namkeen". 12.2 We refer to the CTH 2106 of Customs Tariff Act and same is read as under : 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 2106 10 00 - Protein concentrates and textured protein substances 210690 - Other: --....
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....Heading/ Subheading/ Tariff item Description of Goods 101A 2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, other than those 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 any enforceable right in respect of 'such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]] 13.1 We find that the applicant argument that its food product cover under Entry No. 101A is based on the basis that the packages do not contain any brand. It means applicant food packages does not bear brand name and are un-branded. The above entry No. 101A has been amended vide Sr. No. (xi) of Not. No. 6/2022-CT (rate) dated 13-7-2022 w.e.f 18-7-22 is reproduced as under : (xi) against S. No. 101 A, in column (3), for the portion beginning with the words "other than those put up in" and ending with the words and bracket "as in the ANNEXURE]", the words ", other than those pre-packaged and labelled" shall be s....
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....ds when they were put up in a unit container and were bearing a registered brand name or were bearing brand name in respect of which an actionable claim or enforceable right in a court of law is available. With effect from the 18lh July 2022, this provision undergoes a change and GST has been made applicable on supply of such "pre-packaged and labelled" commodities attracting the provisions of Legal Metrology Act, as detailed in subsequent questions. For example, items like pulses, cereals like rice, wheat, and flour (aata), etc., earlier attracted GST at the rate of 5% when branded and packed in unit container (as mentioned above). With effect from 18.7.2022, these items would attract GST when "pre-packaged and labelled". Additionally, certain other items such as Curd. Lassi, puffed rice etc. when "pre-packaged and labelled" would attract GST at the rate of 5% with effect from the 18th July, 2022. Essentially, this is a change in modalities of imposition of GST on branded specified goods to "pre-packaged and labelled" specified goods. [Please refer to notification No. 6/2022-Central Tax (Rate) and corresponding notification under respective SGST Act, IGST Act] 2. What ....
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....ny enforceable right in respect of 'such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]] 13.7 The said entry was amended vide No. Not. No. 6/2022-CT (rate) dated 13-7-2022 w.e.f 18-7-22 vide Sr. No. (iii) of Schedule-II as under : (iii) against S. No. 46, in column (3), for the portion beginning with the words "put up in " and ending with the words and bracket "in the ANNEXURE] ", the words ", pre-packaged and labelled" shall be substituted; 13.8 Amended Entry No. 46 of Not. No. 1/2017-CT (Rate) dated 28-6-2017 of Schedule-II and GST Rate @12% with effect from 18-7-2022 is read as under: 46 2106 90 Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form [other than roasted gram] [, pre-packaged and labelled] 13.9 The above entry no. 46 is eligible for the supply of pre-packaged and labelled in terms of clause (ii) inserted in explanation of Notification No. 1/2017-CT (Rate) dated 28-6-17. We have already hold that the applicant intended supply of food product viz. salted and flavored Potato Chips, Potato Sev (Aloo Sev), Potato Chivda (Potato Salli Mixture), Sing Bhuj....