In re Colourtex Industries Private Limited (GST AAR Gujarat)
Applicant supplies Tamarind Kernal Powder (TKP). Colourtex, in Central Excise regime, classified TKP at CETH 1302, as per the CBIC Circular No. 1037/25/2016-CX dated 19th July 2016 vide which clarified that the product TKP shall be classified under tariff item 1302 32 90 of CETA, 1985 as a product derived from the seed of the tamarind fruit. The said classification shall apply to both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
Question on which Advance Ruling sought Classification of TKP manufactured by Colourtex.
Tariff 1302 is classified into 3 groups, namely:
| First Group | Vegatable Saps and Extracts |
|---|---|
| Second Group | Pectin substances, pectinates and pectates |
| Third group | Mucilages and thickeners, whethere or not modified, derived from vegetable products. |
AAR observed that TKP merits classification in the third group as a Thickener (modified/ un-modified) derived from vegetable products.
The said third group is further classified into 3 groups, namely:
| First Group | Agar-Agar |
|---|---|
| Second Group | Derived from locust beans, locust bean seeds or guar seed |
| Third group | Other |
AAR held that TKP falls under third group ‘other’ as it is neither Agar-agar nor a thickener derived from locust beans/ locust bean seeds/ guar seeds. In view of the same Modified/ Un-modified TKP is classified at Tariff 1302 39 00.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
M/s. Colourtex Industries Private Limited, hereinafter referred to as Colourtex for the sake of brevity, supplies Tamarind Kernal Powder (TKP). Colourtex, in Central Excise regime, classified TKP at CETH 1302, as per the CBIC Circular No. 1037/25/2016-CX dated 19th July 2016 vide which clarified that the product TKP shall be classified under tariff item 1302 32 90 of CETA, 1985 as a product derived from the seed of the tamarind fruit. The said classification shall apply to both treated (modified) tamarind kernel powder and plain (unmodified) tamarind kernel powder.
2. Colourtex submits that there is no dispute that TKP is classifiable under Chapter 13 of the CTA as follows:
