TaxTMI 
TaxTMI 
2024 (6) TMI 223
X X X X Extracts X X X X
X X X X Extracts X X X X
....gain 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 150g each for commercial sale. Notes : *Proportion of the specific product used in making....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, 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 consisted of the material or component which gives them their essential character, insofar as this criterion is applicable in terms of Rule 3 (b) of the General Rules for Interpretation [GRI] of the 1st Schedule of the Customs Tariff Act, 1975 [CTA]; * chapter 12 of the CTA covers ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ay 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 the products under question; * that they wish to rely on circular No. 197/31/96-CX dated 15-04-1996; * that the products offered by the applicant contain mainly sesamum seeds undergoing few processes, and having added substances namely salt, citric acid, etc.; that even after all these processes, their form does not change and is sold as seed mix (having sesamum seeds and Coriander seeds) and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ind 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 inactivating the lipolytic enzymes and eliminating part of the moisture), for the purpose of de-bittering, for inactivating antinutritional factors or to facilitate their use. However, such treatment is permitted only if it does not alter the character of the seeds and fruits as natural products and does not make them suitable for a specific use rather than for general use. The headings exclude solid residues resulting from the extraction of vegetable oil from oil seeds or oleaginous fruits {including defatted flours and meal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 same is thereafter roasted, cleaned and turmeric powder is added & subsequently packed and sold. 13. Regarding the second product 'Roasted til and ajwain' the composition and the process again are enumerated in the paragraphs above; that the product mainly comprises of sesamum seeds [97%] and Ajwain seeds [2.4%]. A similar process to the one mentioned above is undertaken in respect of this product also. 14. It is also the applicant's claim that there is no element of pan masala, sugar or chocolate, preservatives or any other artificial flavoring substance added to their product. 15. We find that the General Rules for Interpretation [GRI] of Customs Tariff as applicable to GST Tariff state as under viz | relevant extracts]: 2. (a) .. (b) Any reference in a heading ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....samum 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 for other purposes eg apricot, peach or plum kernels and coca beans. 18. The HSN explanatory notes to chapter 12 further states that the seeds covered by the heading may be whole, broken, crushed, husked or shelled; they may also have undergone heal treatment designed mainly to ensure better preservation for the purpose of de-bittering for inactivating anti factors or to facilitate their use; that such treatment is permitted only if it does not alter the character of the seeds & does not make them suitable for a specific use rather than for general use. 19. The applicant has stated that the heat treatment done on the seeds is for preservation only and the said treatment does not convert them for any specific use; that they can be used for any purpose; that they have chosen to treat them further by way of flavouring ....