In re Dipak kumar Kantilal Chotai (Talod Gruh Udyog) (GST AAAR Gujarat)
(i) The products (a) Khaman Mix Flour, (b) Gota Mix Flour, (c) Dhokla Mix Flour, (d) Handwa Mix Flour, (e) Idli Mix Flour, (f) Dosa Mix Flour, (g) Dahi Wada Mix Flour, (h) Dalwada Mix Flour, (i) Khichu Mix Flour, (j) Upma Mix Flour, (k) RavaIdli Mix Flour, (l) Medu Wada Mix Flour, (m) Muthiya Mix Flour, (n) Pudla Mix Flour, (o) Moong Bhajiya Mix Flour, (p) Chorafali Mix Flour, and (q) Bhajiya Mix Flour being supplied by Shri Dipakkumar Kantilal Chotai (Talod Gruh Udyog) is classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975.
(ii) The products (a) Khaman Mix Flour, (b) Gota Mix Flour, (c) Dhokla Mix Flour, (d) Handwa Mix Flour, (e) Idli Mix Flour, (f) Dosa Mix Flour, (g) Dahi Wada Mix Flour, (h) Dalwada Mix Flour, (i) Khichu Mix Flour, (j) Upma Mix Flour, (k) RavaIdli Mix Flour, (l) Medu Wada Mix Flour, (m) Muthiya Mix Flour, (n) Pudla Mix Flour, (o) Moong Bhajiya Mix Flour, (p) Chorafali Mix Flour, and (q) Bhajiya Mix Flour being supplied by Shri Dipakkumar Kantilal Chotai (Talod Gruh Udyog) are covered under entry at Sr. No. 23 of Schedule – III of Notification No. 1/2017-Central Tax (Rate), as amended and Notification No. 1/2017-State Tax (Rate), as amended and are leviable to Goods and Services Tax @ 18% ad-valorem (9% CGST + 9% SGST).
FULL TEXT OF THE ORDER OF AUTHORITY OF APPELLATE ADVANCE RULING, GUJARAT
Shri Dipakkumar Kantilal Chotai (Prop. of TalodGruh Udyog) (herein after referred to as the applicant) filed an application for advance ruling before the Gujarat Authority for Advance Ruling (herein after referred to as the ‘GAAR’) wherein it was inter-alia submitted that the applicant is selling ‘Mixed Flour’ which is used for preparing different traditional Indian dishes such as Khaman, Gota, Dhokla, Handwa, Rice & Rava Idli, Dosa, Dahiwada, Dalwada, Menduwada, Bhajiya, Vada Masala, Khichu, Upma, Muthiya, Pudla, GulabJamun, Moong Bhajiya and Cholafali. It was submitted that in a nutshell, the said ‘Mixed Flour’ is used for preparing ‘Instant Farsan’ or eatable and a special mention can be made of Khaman, Gota and HandwaMix which has been accepted in the market as a product leader. The applicant has been selling varied types of ‘Mixed Flour’ under the ‘Talod’ brand name.
2. The applicant submitted that ready to mix/instant mix is a flour of grains and pulses mixed with spices and condiments; that recipe for preparing farsan/eatables is printed on the packet of product and by following the direction of recipe, farsan/eatables can be prepared instantly after adding such other ingredients as required. The process followed by the applicant (Talod) was narrated as under:
(a) Talod purchases food grains and pulses from open market.
(b) Such pulses are sorted and washed and then send to grinding machine.
(c) Pulses are grinded into flour in grinding machine e.g. where Grams is purchased, it results into gram flour by following grinding process. In certain cases, Talod purchases grinded flour directly from the vendors.
(d) Now, certain spices are mixed in flour and such mixed flour is packed in various packings.
(e) Mixed Flour (commercially known as ‘Instant Mix Flour’) are sold in open market or through distributors to consumers.
(f) End consumer of such ‘Instant Mix Flour’ is required to follow certain food preparation process before such product can be consumed as eatable.
(g) Hence, ‘Instant Mix Flour’ cannot be consumed as it is, but it is required to follow certain cooking procedures before consumption. Hence the product manufactured and sold by the applicant is not ‘ready to eat’ but can be said as ‘ready to cook’.
3. The applicant submitted an activity-wise manufacturing process flow chart for preparing final mixed flours in a diagrammatic manner and explained the manufacturing process as under –
(a) Ready to Mix/Instant Mix Flour contains mainly flours of grains and/or pulses like Bengal Gram Dal, Gram Dal, UdadDal, Chana Dal, Moong Dal, Paddy, Sago, Wheat granule, Rice etc. where the content of ‘flour’ is having major weightage. Most of the Mixed Flour products have ‘flour’ content of more than 70-90%.
(b) Powder of spices like Pepper, Red Chilli, Coriander, Ajma, Sounff, Jeera, Turmeric, Tamarind, Iodised Salt, Sugar, Mustard, Lemon, Condiments, Citric Acid, Sodium Bicorbonate, Turmeric, Cumin, Clove, Curry Leaves, Asafoetida, Baciliyam, Black Pepper, TejPatta, Curry Leaves Bundian, Fennel Seeds, Anise Seeds, Bay Leaf, Neem Leaves(Sweet), Flavours etc. are added in a very little quantity to make the product tasty and delicious.
(c) At the processing unit, the applicant is not carrying out any process of cooking. The applicant carries on only mixing process, whereby spices, condiments and flavours are mixed with flour of grains, cereals and pulses. Flour of grains, cereals and pulses are used in its primary form.
(d) Instant Mix/Ready to Mix Flour is packed in sealed packing of 50/90/200/250/500 grams and in 1 kgs. On packing material, preparation process/recipe is printed to prepare food from such Instant Mix.
(e) Instant Mix/Ready Mix Flour is by all means not a processed food, neither cooked food, nor semi-processed food, nor semi cooked food, nor preserved food or not a ready-to-eat food. Instant mixed flour is a flour of grains and pulses mixed with spices, condiments and flavours.
4. The applicant gave the details of raw materials used in various products manufactured and flour of grains and pulses and other condiments contained in the products, as follows:
