In re Alisha Foods (GST AAR Madhya Pradesh)
Heading 2106 is an omnibus heading covering all kind of edible preparations, not elsewhere specified or included. Chapter Note 5 provides an inclusive definition of this heading and covers preparations for use either directly or after processing, for human consumption. In 5(b) above preparation for use after processing has been included and mentioned therein such as cooking, dissolving or boiling in water, milk or other liquids. Obviously, the term ‘such as’ is purely illustrative but not exhaustive and therefore processing includes frying also, hence fried goods are also covered under chapter head 2106 which is ready for human consumption. Further, Chapter Note 6 pertaining to Tariff Item 2106 90 99 also provides inclusive definition and products mentioned therein are illustrative only.
Taking all these aspects into consideration, it is held that the product ‘Fried Fryums’ is appropriately classifiable under Tariff Item 2106 90 99.
SI. No. 23 of Schedule III of issued under the CGST Act. 2017 and corresponding Notification No. 1/2017-State Tax (Rate) dated 30.06.2017, as amended, issued under the GGST Act. 2017 covers “Food preparations not elsewhere specified or included [other than roasted gram, sweetmeats, batters including idli/dosa batter, namkeens, bhujia. mixture, chabena and similar edible preparations in ready for consumption form, khakhra. chutney powder, diabetic foods]” falling under Heading 2106. Therefore. Goods and Service Tax rate of 18% (CGST 9% + GGST 9% or IGST 18%) is applicable to the product ‘Fried Fryums’ as per SI. No. 23 of Schedule III of Notification No. 1/2017 -Central Tax (Rate) dated 28.06.2017, as amended, issued under the CGST Act, 2017 and Notification No. 1/2017-State fax (Rate) dated 30.06.2017, as amended, issued under the GGST Act, 2017 or IGST Act, 2017.
Read Also AAAR: Fried Fryums classifiable under Tariff Item 2106 90 99
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MADHYA PRADESH
PROCEEDINGS
(Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods & Service Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods and Services Act, 2017 and MP Goods and services Act, 2017 (hereinafter also referred to CGST Act and SGST Act respectively) by M/s ALISHA FOODS (hereinafter referred to as the Applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE:
3.1. The Applicant is a partnership firm having two Partners engaged in the manufacturing business of Papad (Fryums), Namkeens and Popcorn under the brand name of Target School Times.
3.2 Applicant has filed an application seeking advance ruling under section 97 of CGST Act, 2017 MPGST Act, 2017 and IGST Act, 2017 for correct classification of Papad and Papad Fryums of different shapes, sizes and varieties (commonly known as Fried Fryums) manufactured by Applicant and sold. The Applicant manufactures Fried Fryums of different shapes, sizes and varieties which are ready to eat.
3.3 An Application was filed regarding Classification of Items manufactured i.e Papad and Papad Fryums by the concern in different shapes and size. But at the time of hearing the applicant reframed the question and clearly stated that the Question for Advance Ruling is ‘What is the correct classification of Fried Fryums of different shapes, sizes and varieties which are ready to eat and What is the HSN Code and GST rate applicable on such goods manufactured.
4. QUESTIONS RAISED BEFORE THE AUTHORITHY
Hence the question posted before the Authority in the application:-
4.1. What is the correct classification of Fried Fryums of different shapes, sizes and varieties which are ready to eat and What is the HSN Code and GST rate applicable on such goods manufactured.
5. CONCERNED OFFICER’S VIEW POINT:
The concerned officer is his view submitted that Fried Fryum will be classified under Tariff 2016 90.
6. RECORD OF PERSONAL HEARING:
6.1. Ms. Pooja Sureka, CA appeared for personal hearing. At the outset they informed that the applicant paid only 5000/- for SGST as fee along with the application and the requisite fee of rupees 5000/- under CSGT was paid on 28.08.19.Accordingly they urged to admit the application. Since the requisite fee has been paid on 28.08.19 the application date shall be 28.08.19 only. This was accepted by her. the applicant reiterated the submissions already made in the application. They reiterated the facts submitted along with the application.
The Applicant states that –
6.2. Applicant, M/s Alisha Foods is doing business at 24, Mirza Wadi, Ujjain-456006, is a registered concern in GST Act, 2017 having GSTIN – 23ABBFA7513N. Applicant is engaged in manufacturing of Fried Fryums, Namkeens and Popcorns which are ready to eat under the brand name of Target School Times.
Applicant has filed an application seeking advance ruling under section 97 of CGST Act, 2017 MPGST Act, 2017 and IGST Act, 2017 for correct classification of Papad and Papad Fryums of different shapes, sizes and varieties (commonly known as Fried Fryums) manufactured by Applicant and sold. The Applicant manufactures Fried Fryums of different shapes, sizes and varieties which are ready to eat. As such the Question for Advance Ruling is “What is the correct classification of Fried Fryums of different shapes, sizes and varieties which are ready to eat and What is the HSN Code and GST rate applicable on such goods manufactured.
As per applicant the flowchart for the Process involved in Manufacture of Fried Fryums is as follows:-
RAW PAPAD FRYMES PRODUCTION PROCESS
FLOW CHART
This same process is used in making papad although papad are made of many other ingredients like besan, moong dal, chana dal etc. Other than maida flour.
FINISHED PAPAD FRYUMS PRODUCTION PROCESS
FLOW CHART
Brands : Target, School Time.
The product which is manufactured by the concern is sold in Madhya Pradesh as well as outside Madhya Pradesh.
Various States are covered
1. Uttar Pradesh State are Jhansi, Lalitpur, Orai, Auriya, Rabrtsganj, Kanpur
