Case Law Details
In re Ambo Agritec Pvt Ltd (GST AAR West Bangal)
Baked food preparations of flour are classifiable under HSN 1905, which includes bread, pastries, cakes, biscuits and other bakers’ wares. Explanatory Notes to HSN, Third Edition, published by the World Customs Organization (hereinafter EN) clarifies that the heading 1905 includes all bakers’ wares, except when it contains 20% or more by weight sausage, meat, fish etc. Any food preparation that involves baking at any stage of cooking should, therefore, be included under HSN 1905, except the ones mentioned above.
The Applicant’s product is a mixture and dough of wheat flour, sugar and water, cut into specific shape, dried and hardened by heating. Dry heating for hardening dough is a cooking process known as baking. The Applicant’s product is, therefore, a baked item, which needs further processing to become edible. The final edible product, therefore, already involves baking as the method of cooking at an intermediate stage. The end product is, therefore, biscuit or other bakers’ ware classifiable under HSN 1905.
In Subramani Sumathi (supra) the Id AAR, Tamilnadu has dealt with a product, namely ‘papad’, which is specifically included under tariff item 1905 05 40. It is placed as a sub-classification of ‘other bakers’ wares’. The product involves baking at an intermediate stage although the end edible preparation needs frying.
It follows from the above discussion that the Applicant is supplying mixes and dough for preparation of biscuits and other bakers’ wares, whether or not preparation of the final edible item involves further baking or frying. It is, therefore, classifiable under tariff item 1901 20 00.
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