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%.

Author Bio

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Review us on Google

More Under Goods and Services Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

August 2022
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031