TaxTMI 
TaxTMI 
2024 (6) TMI 223
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....ey also procure cleaned sesamum seeds from vendors which are again cleaned to remove any unwanted particles; Step 3: Salt *(<0.5%) and Citric Acid *(<0.05%) are mixed together in water to create a solution, which is further mixed with sesame seed. This process is named salting. After salting, the mixture is rested overnight for the seeds to absorb the salty mixture: Step 4: After the sesamum seeds have absorbed the salt overnight, the sesame seeds are machine cleaned to remove additional salt: Step 5: sesamum seeds are then transferred to machine for roasting. While the sesame seeds are being roasted, turmeric powder *(<0.05%) is applied to them. Once roasting is done, the roasted sesamum seeds are further cleaned to remove additional turmeric powder and broken particles, if any. Later, the roasted sesame seeds are rested in a container to remove any excess heat generated in the process; Step 6: The Fennel. Dill and Ajwain seeds are then roasted separately and mixed with roasted coriander seeds (Dhanadal) and roasted sesame seeds in desired proportion to complete the process; Step 7: The product is then packed in pouches of 1.5g or pouches of 150....
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....eds, which is 60% in Mix mukhwas and 97%, Roasted Til & Ajwain. Further, in Mix mukhwas, in addition to sesamum seeds, dhanadal content is 27%, which when combined, totals to 87%. There is no element of pan masala, sugar or chocolate, preservatives or any other artificial flavoring substances used by them. These products are purchased by the customers who desire to consume sesamum seeds normally as a seed mix. The applicant is currently selling both the products by classifying it under HSN 12074090. 4. The applicant, in his application has further stated as follows viz • that they manufacture seed mix that contains specified types of seeds; • this process once done makes the seed mix edible in nature; • as per the explanation in notification No. 1/2017-CT(R) dated 28,06.2017, interpretation of HSN shall be done as per the CTA '75 for the purpose of interpretation, explanation and classification of goods; • mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consis....
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....vered by HSN code 12074090? 2. Whether the Products 'Mix Mukhwas' and 'Roasted Til & Ajwain' prepared and sold are covered by entry no. 70 of Schedule I of Notification No. 1/2017-Central Tax (Rate) and taxed at the rate of 2.5% CGST and 2.5%% SGST or 5% IGST. 6. Personal hearing was granted on 24.4.2024 wherein Shri Nitesh Jain, CA, Shri Krupen Patel, Shri Jay Dalwadi, Shri Dhrumin Patel and Shri Harsh Shah appeared on behalf of the applicant & reiterated the submission. It was stated that the products on which ruling is sought were new products; that they wish to also rely on circular dated 15.4.1996. The authorized representative further also relied on the executive summary and additional submission dated 24.4.2024 provided during the course of personal hearing. 7. In the executive summary & additional submission, supra, the applicant further stated as follows: • that the classification suggested is supported by the principle of specific over general heading as well as the dominant presence of sesamum seeds in the mixtures; • that both products would fall under 12074090. more so owing to the significant presence of sesame seeds in both th....
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....nous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder NOTES : 1. Heading 1207 applies, inter alia, to palm nuts and kernels, cotton seeds, castor oil seeds, sesamum seeds, mustard seeds, safflower seeds, poppy seeds and shea nuts (karite nuts). It does not apply to products of heading 0801 or 0802 or to olives (Chapter 7 or Chapter 20). HSN Explanatory Notes - Chapter 12 GENERAL Headings 12.01 to 12.07 cover seeds and fruits of 3 kind used for the extraction (by pressure or by solvents) of edible or industrial oils and fats, whether they are presented for that purpose, for sowing or for other purposes. These headings do not, however, include products of heading 08.01 or 08.02, olives (Chapter 7 or 20) or certain seeds and fruits from which oil may be extracted but which are primarily used for other purposes, e.g., apricot, peach or plum kernels (heading 12.12) and cocoa beans (heading 18.01). The seeds and fruits covered by the heading may be whole, broken, crushed, husked or shelled. They may also have undergone heat treatment designed mainly to ensure better preservation (e.g,, by inactivatin....
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.... Other kg. 30% 20% 11. The primary contention of the applicant is that sesamum seeds [Til] is the main seed constituent in both the products in respect of which ruling is sought; that sesamum seeds are classifiable under chapter 12 of CTA '75; that the other seeds in the product are classified under chapter 9, ibid; that heat treatment done in respect of the product is only for preservation and that the heating process does not convert it into any specific use; that they have chosen to treat them further by way of flavoring & use them in the said two products; that in terms of 3 (b) of GRI, mixtures will be classified as per the dominating product which gives the essential character which in their case is sesamum seeds; that they are of the opinion that both the products falls under 12074090 & is leviable to tax under 5% GST. 12. As far as the first product 'Mix Mukhwas' is concerned, the composition and the process are enumerated in the paragraphs above; that the product mainly comprises of sesamum seeds [60%] and coriander seeds [27%]. The process undertaken is that the seeds after being cleaned are mixed with salt and citric acid solution for salting; that the s....
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....sought, clearly show that these products, mainly comprise of sesamum seeds i.e. 60% in respect of the first product and 97% in respect of the second product. 17. Now, we find that as far as sesamum seeds are concerned, they are classifiable under Chapter 12. Chapter 12 bears the heading 'Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder'. While item 1201 deals with soya beans, whether broken or not, item 12.02, deals with ground-nuts, item 1203 deals with copra item 1204 with linseed, whether broken of not, item 12.05 deals with rape-seeds or colza-seeds, whether or not broken, item 1206 deals with sunflower seeds, whether or not broken and item 1207.00 to item 1209.29 deals with different types of seeds. Heading 1207, applies inter alia to sesamum seeds. HSN explanatory notes further states that headings 12.01 to 12.07 cover seeds & fruits of a kind used for extraction, whether they are presented for that purpose, for sowing or for other purpose; that the heading does not cover products of heading 08.01 or 08.02, olives, certain seeds and fruits from which oil may be extracted but which are primarily used fo....
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.....04 to 09.10 are to be classified as follows : (a) Mixtures of two or more of the products of the same heading are to be classified in that heading; (b) Mixtures of two or more of the products of different headings are to be classified in heading 09.10. The addition of other substances to the products of headings 09.04 to 09.10 (or to the mixtures referred to in paragraph (a) or (b) above) shall not affect their classification provided the resulting mixtures retain the essential character of the goods of those headings. Otherwise such mixtures are not classified in this Chapter, those constituting mixed condiments or mixed seasonings are classified in heading 21.03. Such a note is absent as far as chapter 12, is concerned. 23. The chapter note referred in chapter 21, is as under Notes. 1.- This Chapter does not cover: (a) Mixed vegetables of heading 07.12; (b) Roasted coffee substitutes containing coffee in any proportion (heading 09.01); (c) Flavoured tea (heading 09.02); (d) Spices or other products of headings 09.04 to 09.10; The exclusion in 1 (d) talks only of chapter 9 and not of 12. Thu....