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In re Agro Tech Foods Limited (GST AAR Telangana)

Overview :-

-M/s. Agro Tech Foods Limited, is in the business of selling ready to eat (RTE) popcorn.

-Ready to eat popcorn is obtained by popping the maize corn using a heating process, which is subsequently coated with palmolene oil, salt, natural or artificial flavouring, and spices.

Assessee :-

  • The applicant submitted that Heading 1904 includes prepared foods obtained by swelling or roasting of cereals or cereal products that are covered under Tariff Heading 1904
  • Thus, the popcorn being manufactured by the applicant by using the process of swelling by heating would merit classification under Heading 1904.

AAR :-

The Specific case can be covered in 3 Tariff Headings :-

  • Heading 1904 – includes prepared foods obtained by swelling or roasting of cereals or cereal products
  • Heading 2008 – i.e., fruit, nuts, and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included.
  • Heading 2106 – is a residuary entry which covers food preparations which are not covered elsewhere, like mithai, mishtans, sweetmeats, namkeen, etc.
  • The AAR relied on the decision of the Supreme Court in the case of Indian Metals & Ferrous Alloys Vs. CCE, in which it was held that in the classification of goods, a specific entry will be preferred to a general entry.

Hence, RTE popcorn is classifiable under tariff head ‘1904’.

Conclusion :-

  • Specific entry will be preferred to a general entry
  • RTE popcorn is classifiable under tariff head ‘1904’ @18%.

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