In re Khera Trading Company (GST AAAR Haryana)
In the instant case, the impugned item is mixture of vegetable oil and other food stuffs. After the manufacturing process, as detailed in the appeal, it is observed that individual identity of all the mixtures is lost and what, emerges is totally a different item, a new product having different name, character and use. Thus, cooking cream cannot be said to be merely a mixture of vegetable oil with other ingredient, but a totally new product having different name character and use. Under such circumstances, it does not merit classification under chapter heading 1517, rather merits classification under chapter heading 21069099, as “preparations not elsewhere specified or included” as it does not remain fraction of palm oil.
Further, we have also noted that the Authority for Advance Ruling in its ruling has discussed the issue as to how the impugned goods merit classification under Heading 2106. Authority for Advance Ruling discussed in detail that WCO- HS Committee, US International Trade Commission Rulings and Harmonised Tariff Schedule has classified the product under Heading 2106 90. Authority for Advance Ruling also discussed in its findings that import data of India, as regard to import of “non-dairy whipping/topping cream at various Indian ports was also checked on various websites and as per this import data, non dairy topping/whipping cream is being imported by classifying under chapter sub-heading 21069099.
Thus, in view of the above discussions and findings, the impugned item merits classification under chapter heading 2106 of the schedule to the Customs Tariff Act, 1975 and chargeable to GST accordingly. We also found that the Advance Ruling Authority has gone through the matter in detailed way and passed a well reasoned speaking order and hence, there is no reason to interfere with the order.
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING,HARYANA
Order under Section 101 of the Central goods and Services Tax Act, 2017/ the Haryana Goods and Services Tax Act, 2017
The present appeal has been preferred by M/s Khera Trading Company situated at Sanoli Road, Near Govind Tobacco Factory, Panipat, Haryana-132103 (‘Appellant’) against the Advance Ruling No. HAR/HAAR/R/2018-19/09 Dated 30.08.2018 passed in their application dated 04.06.2018.
BRIEF FACTS OF THE CASE
2. The Appellant is inter alia engaged in the distribution of various dairy and non-dairy products and are registered with the jurisdictional GST authorities vide GSTIN 06AOEPK0998K1ZK. The goods “Cooking Cream” sold by the appellant under the name ‘Cooking Delite’ is a proprietary food consisting of Water, Edible Vegetable Fat (hydrogenated palm kernel oil), Milk Solid, Sugar along with premixes of emulsifiers and stabilizers. It is ideal for use in truffles, soups, sauces, gravies and all types of cuisines.
2.1 The impugned good comprises of 26 per cent edible oil (hydrogenated palm kernel oil) to which other ingredients such as milk solids, sugar and premixes are added, thus, forming a mixture/preparation of vegetable oil. The composition of the product is tabulated as under:
