TaxTMI 
TaxTMI 
2025 (4) TMI 416
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....fication is not specific as per the application, they have once again reiterated the same process and stuck to their classification. The essence of the claim furnished by the applicant in their rectification application is as follows. "ERRORS APPARENT ON THE FACE OF RECORD The applicant claimed that the members vide order No. 25/AAR/2023 dated 20-06-2023 have wrongly understood the process of preparation of tapioca flour and hence classified the same wrongly under HSN 2303.10 as 'Residues of starch manufacture and similar residues' liable to 5%, instead of classifying the same as 1106 @ NIL rate of tax, as the same is without a brand name. Further the applicant stated that Tapioca flour purchased and sold by them is obtained by drying and crushing the inferior tapioca roots, which is not normally used for manufacture of starch sago. Tapioca flour is not obtained from residues of starch, as described in Tariff item 2303.70. Chapter 23 deals with residues and waste from the food industries and prepared animal fodder unfit for human consumption taxable @ 5% / 9%. 3. PERSONAL HEARING Shri. P. Vasudevan, Propreitor, Shri. Ganapathy Subramnaian, GST Practitioner, Shri....
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....products, certain residues of waste of starch namely wet tapioca waste is obtained, which is dried and crushed into tapioca flour which is used for animal feed and for manufacturing of adhesives. The end waste product obtained after grinding the dried tapioca flour is called kappi which is also marketable for use as livestock feed. • Reproducing TSH 1106, the applicant states that the goods they are dealing would fall under exemption category, if sold without registered brand name and other than those put up in unit containers. The tariff item 1106 includes flour of sago or of roots or tubers of tariff heading 0714. Therefore claimed that flour of manioc or cassava (tapioca) or sago are included in the exemption category. • Finally, the applicant prayed to set right the apparent errors on the face of the records and issue appropriate orders in accordance with the provisions of law on the question specified in the application and thus render justice. 4. DISCUSSION AND FINDINGS 4.1. We have carefully considered the submissions made by the applicant in the application for rectification of mistake (ROM), and the additional submissions made during the per....
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....s primarily a dealer in purchase and sale of tapioca flour without any brand name and further no further process like blending is done. The tapioca flour procured from the suppliers are packed in 70Kgs gunny bags without any registered brand name. 4.5. To decide on the claim of the applicant that the order No. TN/25/AAR/2023 Dated 20-06-2023 of the Authority for Advance Ruling is to be rectified, first we have to examine the process of making the Tapioca flour by the applicant as stated by them as well as the process of production in the normal course of preparation by the Industries. 5. FACTS AS STATED BY THE APPLICANT: • Tapioca or Cassava one of the root crop grown by the agriculturalist and the processing of tapioca roots is used for obtaining graded products such as Tapioca Wet Starch, Tapioca Starch, Sago (Sabudhana). • These goods are fine products of Tapioca roots used in the industrial preparation of various other products for human consumption and are taxable. • The by-product during the production of above product is certain residues of waste of starch namely wet tapioca waste, which is dried and crushed into tapioca flour. ....
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....sed for cattle feed. This dried, crushed flour is also used for manufacturing of adhesives. 9. Chapter 7 is the classification of 'Edible vegetables and certain roots and tubers'. This chapter contains all agricultural produce of edible vegetables, roots and tubers which attracts 'Nil' rate of GST, except when supplied with a registered brand name. The tariff heading 070141000 specifically mentions Manioc (cassava), a root vegetable which is an enlarged root of a plant. 'Tuber' is a modified stem of a plant. While both grow underground, the edible part of a root vegetable is the actual root, whereas the edible part of a tuber is a thickened stem that stores energy for the plant; examples of root vegetables include carrots and turnips, while potatoes and sweet potatoes are tubers. 10. Chapter 11 .is the classification of 'Products of the milling industry: malt; starches, inulin; wheat gluten'. The Chapter is very specific about the preparation of the products namely, malt, starches, inulin and wheat gluten. It implies that any process or series of process such as cleaning, tempering, and grinding of cereals or like, in the preparation of the abo....