Tamarind Kernal Powder classifiable under Tariff Heading 1302 39 00

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:

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:

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:

3. Colourtex submits that Tariff Item No.1302 32 90, which is for Mucilages and thickeners, whether or not modified, derived from locust beans, locust Bean seeds or guar seeds. Colourtex submits that TKP is not derived from locust beans / locust beans seeds/ guar seeds. TKP is manufactured by grinding Tamarind Kernel Seeds derived from tamarind tree. Hence, the same is classifiable under Tariff Item No.1302 39 00, i.e., the category of ‘Others’.

4. Question on which Advance Ruling sought Classification of TKP manufactured by Colourtex, as listed in the table of Para 2.3 of the annexure attached.

5. Personal Hearing:

Personal hearing granted on 18-2-22 and no authorised representative of the applicant appeared on behalf of the company.

6. Revenue’s submission:

Revenue has neither submitted its comments nor appeared for hearing.

Findings

7.The issue before us is Classification of TKP. We find that Tariff 1302 is classified into 3 groups, namely:

7.1 We find TKP merits classification in the third group as a Thickener (modified/ un-modified) derived from vegetable products.

7.2 The said third group is further classified into 3 groups, namely:

7.3 We hold 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.

8. We concur with Coulourtex and proceed to pass this Ruling.

RULING

Modified/ Un-modified TKP is classified at Tariff 1302 39 00.