TaxTMI 
TaxTMI 
2025 (7) TMI 382
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....s and Machinery Sr. No. Machine Name Model No Quantity Power in KW 1 Garlic bulb Cutting machine Divine make 400KGH 1 2.0 2 2Garlic Peeling machine no 1 Divine make 100KGH 1 1.5 3 3 Air compressor for M/c no 1 FS Compressor 58 CFM 1 11.0 4 Sorting conveyor for m/c no 01 Divine 15 ft x 2 ft 1 1.0 5 Hot Air dryer Divine 400 KGH 1 7.5 5. The applicant has further stated viz • that the processing of raw garlic bulb results in emergence of a new product having no different character but a distinct name - 'chopped garlic'; that its use varies; that according to them the process carried out amounts to manufacture; • that chopped garlic is not fresh having undergone various processes like quality inspection, sampling, moisture removal process, crushing of whole bulb of garlic, peeling, sorting, chopping and packing; • that Rule 3 of the General Rules of Interpretation is applicable; • that the chopped garlic so obtained, falls under Tariff heading 20.05, attracting GST @ 12% in terms of serial no. 37 of schedule II of notification No. 1/2017-CT (R....
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....all be in respect of,- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Customs Tariff Chapter 07 Tariff Item Description of goods Unit 0703 ONIONS, SHALLOTS, GARLIC, LEEKS AND OTHER ALLIACEOUS VEGETABLES, FRESH OR CHILLED 0703 10 - Onions and shallots: 0703 10 10 - - - Onions: 0703 10 20 - - - Shallots kg. 0703 20 00 - Garlic kg. 0703 90 00 - Leeks and other alliaceous vegetables kg. Customs Tariff Chapter 20 2005 ....
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....l in Chapter 20. However, it should be noted that homogenisation, by itself, does not qualify a product of this Chapter for classification as a preparation of Chapter 20. It should also be noted that vegetables of this Chapter remain classified here even if put up in airtight containers (e.g., onion flour in cans). In most cases, however, products put up in these packings have been prepared or preserved otherwise than as provided for in the headings of this Chapter, and are therefore excluded (Chapter 20). Similarly, products of this Chapter remain classified here (e.g., fresh or chilled vegetables) when subjected to packaging by means of a Modified Atmospheric Packaging (MAP) process. In a MAP process the atmosphere surrounding the product is altered or controlled (e.g., by removing or reducing the oxygen content and replacing it with or increasing the nitrogen or carbon dioxide content). Fresh or dried vegetables fall in this Chapter whether intended for use as food, for sowing or for planting (e.g., potatoes, onions, shallots, garlic, leguminous vegetables). However, the Chapter does not cover seedling vegetables in a condition for replanting ....
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....the viscosity of a product through reduction of water content or other means. 6.- For the purposes of heading 20.09, the expression "juices, unfermented and not containing added spirit" means juices of an alcoholic strength by volume (see Note 2 to Chapter 22) not exceeding 0.5 % vol. Subheading Notes. 1.- For the purposes of subheading 2005.10, the expression "homogenised vegetables" means preparations of vegetables, finely homogenised, put up for retail sale as infant food or for dietetic purposes, in containers of a net weight content not exceeding 250 g. For the application of this definition no account is to be taken of small quantities of any ingredients which may have been added to the preparation for seasoning, preservation or other purposes. These preparations may contain a small quantity of visible pieces of vegetables. Subheading 2005.10 takes precedence over all other subheadings of heading 20.05. 2.- For the purposes of subheading 2007.10, the expression "homogenised preparations" means preparations of fruit, finely homogenised, put up for retail sale as infant food or for dietetic purposes, in containers of a net weight content not ....
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....olic strength by volume exceeding 0.5 % vol (Chapter 22). 11. To recapitulate, the applicant is engaged in the supply of peeled & chopped garlic. It is the applicant's case that the fresh garlic falls under HSN 0703, while the peeled & chopped garlic, having undergone the process [as mentioned in the flow chart supra] through the machines, as listed above, would fall under HSN 2005. 12. Moving on to the questions on which the applicant has sought ruling, we find that the first question posed before the authority is whether the activity of peeling, chopping and packing of garlic amounts to manufacture? 13. In terms of section 95(a) of the CGST Act, 2017, 'advance ruling' means a decision provided by the Authority for Advance Ruling, to an applicant on matters or on questions specified in section 97(2), reproduced supra, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by an applicant. The question as to whether a particular process undertaken/proposed to be undertaken would amount to manufacture, does not find a mention under the seven matters listed at 97(2)(a), ibid. We, thus refrain from answering the said question. ....
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....ocess, crushing of whole bulb of garlic, peeling, sorting, chopping and packing, does not remain fresh; that it is processed garlic & should hence fall under chapter 20 which deals with preparation of vegetables, fruits, etc .. 19. No laboratory report, has been submitted by the applicant to substantiate the averment that the garlic, consequent to undergoing the process as shown in the flow diagram, does not remain fresh. However, contrary to the claim we find that the explanatory notes of chapter 07 states that the chapter covers vegetables, whether fresh chilled, frozen (uncooked or cooked by steaming or boiling in water) provisionally preserved or dried (including dehydrated, evaporated or freeze dried); that the vegetables of this chapter may be whole, sliced, chopped, shredded, pulped, grated, peeled or shelled. The chapter note, includes peeled, chopped, sliced vegetable. We find that the product of the applicant which is peeled and chopped garlic consequent to undergoing the process would therefore fall in 0703 only. 20. Moving on to the third question raised by the applicant, as to whether the applicant is required to discharge GST or not? The HSN of 0703 states as un....