2023 (7) TMI 871

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....AZCS8693P1ZL, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act, KGST Act. 2. The applicant is engaged in manufacture of nutrition food products. They intend to manufacture new variety of chikkies i.e. Sesame Chikkies, Chocolate Peanut Chikkies, Amaranth Chikkies, Crushed Peanut Chikkies, Spirulina Chikkies, Dry Fruit Chikkies. Thus the applicant filed the instant application seeking advance ruling on classification of the said products and the applicable GST thereon. 3. In view of the above, the applicant has sought a....

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....t to start manufacturing of new variety of chikkies and thus they intend to know the classification of the said products and rate of GST thereon. 6. Applicant's Interpretation of Law: The Applicant submitted that Chikkies are to be taxed at 5% GST as per Notification No.41/2017-Central Tax (Rate) dated 14.11.2017 and thus seeks clarity on classification of their new chikkies i.e. dry fruit chikkies and spirulina chikkies and also the applicable rate of GST theron. They contended that their products are covered under HSN 1704 and thus are taxable at 5% GST. PERSONAL HEARING PROCEEDINGS HELD ON 18.05.2023 7. Sri Srinivas R Gururajan, Managing Director of the applicant company appeared for personal hearing proceedings and reiterated t....

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.... made from sugarcane without separating the molasses. Thus jaggery broadly can be termed as a form of sugar. 11. Sugar preparations which are marketed in a solid or semi-solid form generally suitable for immediate or direct consumption without further processing are collectively referred to as confectioneries. Chikkis, which are jiggery based preparations and are meant for direct consumption as snacks, are squarely covered under term Sugar Confectioneries. 12. Now we proceed to examine the classification of the impugned products, as it is decided that the said products are covered under Sugar Confectionery. Chapter 17 of the Customs Tariff Act 1962 covers Sugars and Sugar Confectionery and chapter heading 1704 covers Sugar Confectione....

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....fectionery containing Cocoa is covered under chapter heading 1806 and is exigible to GST @ 18%, in terms of entry number 12C of the Schedule - III to the Notification No. 1/2017-Central Tax (Rate) dated 18.06.2017, as amended by the Notification 41/2017-Central Tax (Rate) dated 14.11.2017. 16. The "Dry Fruit Chikkies" are classifiable under chapter heading 1704, as they are covered under sugar confectionery, as discussed in the proceeding para 12. 17. In view of the foregoing, we pass the following RULING 1. Chikkies covered under sugar confectionery are classifiable under chapter heading 1704 and are taxable to GST @5%, in terms of entry number 92 of Schedule-I to Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as ....