Case Law Details
In re Venkateswara Cashew Chikky Manufacturers (GST AAR Andhra Pradesh)
In the case of Venkateswara Cashew Chikky Manufacturers, the query arises about the classification of their product “N.B.S. Crackle.”
The applicant, Venkateswara Cashew Chikky Manufacturers, produces a product known as “N.B.S. Crackle.” The composition of this product includes ingredients like sugar, cashew nuts, butter, liquid glucose, and permitted flavors. The manufacturing process involves boiling sugar and water to form a vitreous mass, followed by the addition of cashew nuts, butter, and liquid glucose. The mixture is then cooled, shaped, and processed using specialized machines. The final product is primarily used as a topping in ice cream manufacturing.
The central issue revolves around the classification of “N.B.S. Crackle” under GST. The applicant contends that the product falls under the category of “sugar boiled confectionery” and should be classified under Chapter Heading 1704 as per Schedule II of Notification No. 01/2017, dated 28-6-2017. However, it is important to consider whether the product truly aligns with the characteristics of traditional “sugar boiled confectionery.”
Upon examination, it becomes clear that “N.B.S. Crackle” serves an industrial purpose rather than being a direct consumer confectionery. It is used as an ingredient in the production of ice creams, specifically as a topping. This sets it apart from traditional sugar boiled confectionery, which is meant for immediate consumption by end-users. The usage and intended purpose of the product play a crucial role in its classification.
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