FRYUMS (Fried and ready to eat) – GST Exempt or Taxable

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GST Exempt or Taxable

Case Details: Appellate Authority for Advance Ruling, Gujarat Alisha Gruh Udyog, In re - [2022] 135 taxmann.com 206 (AAAR-GUJARAT)

Judiciary and Counsel Details

    • J. P. Gupta and Seema Arora, Member
    • Apurva N. Mehta, Adv. for the Appellant.

Facts of the Case

The appellant was engaged in the business of manufacturing and supply of Fryums and different type of Namkeen/Farsan. It filed an application for advance ruling to determine taxability of Fryums manufactured by it. The Authority for Advance Ruling held that product ‘fried Fryums’ manufactured and supplied by applicant would be classifiable under Tariff Item 2106 90 99 and taxable at 18%. It filed appeal against the order.

AAAR Held

The Appellate Authority for Advance Ruling observed that ingredients, uses and common parlance test would be decisive factors for classification and not name. The main ingredients of papad and impugned products were more or less similar. However, Sl. No. 96 of Notification No. 2/2017-Central Tax (Rate) would cover only papad products that shall be supplied in ready to cook condition and not in ready to eat condition. The product Fryums shall be fried with masala and would not require further process which made them ready to eat. Therefore, such fryums would be classifiable under tariff item 1905 90 40 and would attract GST at 18%.

Case Review

    • Barakatbhai Noordinbhai Velani, In re [2021] 123 taxmann.com 251 (AAR – Guj.) reversed.
    • Shiv Shakti Gold Finger v. Asstt. Commissioner, Commercial Taxes [1996] 9 SCC 514 (para 43); State of Karnataka v. Vasavamba Stores [2013] 29 taxmann.com 551 (Kar.) (para 43); Avadh Food Products v. State of Gujarat [First Appeal No. 1 of 2015, dated 3-7-2015] (para 43) and Swethin Food Products v. State of Gujarat 2016 GSTB-I 296 (para 43) followed.

List of Cases Referred to

    • Barakatbhai Noordinbhai Velani, In re [2021] 123 taxmann.com 251 (AAR – Guj.) (para 2),
    • Manilal Commodities (P.) Ltd. v. Collector of Customs 1992 (59) ELT 189 (CEGAT – New Delhi) (para 13),
    • Commissioner of Customs, CGO v. Sonam International 2012 (275) ELT 326 (All.) (para 13),
    • Subramani Sumathi, In re [2019] 104 taxmann.com 197/72 GST 781 (AAR – Tamil Nadu) (para 15),
    • State of Punjab v. Amritsar Beverages Ltd. [2006] 147 STC 657 (SC) (para 16),
    • J.K. Cotton Spg. & Wvg. Mills Ltd. v. Union of India [1988] 68 STC 421 (SC) (para 16),
    • Senior Electric Inspector v. Laxminarayan Chopra [1962] 3 SCR 146 (para 16),
    • Chaudhary Tractor Company v. State of Haryana [2007] 8 VST 10 (Punj. & Har), (para 16),
    • Shiv Shakti Gold Finger v. Asstt. Commissioner, Commercial Taxes [1996] 9 SCC 514 (para 18),
    • State of Karnataka v. Vasavamba Stores [2013] 29 taxmann.com 551 (Kar.) (para 18),
    • CCT v. TTK Health Care Ltd. [2007] 7 VST 1 (SC) (para 18),
    • Avadh Food Products v. State of Gujarat [First Appeal No. 1 of 2015, dated 3-7-2015] (para 19),
    • Swethin Food Products v. State of Gujarat 2016 GSTB – I 296 (para 19),
    • Jay Khodiyar Agency [2007-D-98-103, dated 11-9-2007] (para 19),
    • Kansara Trading Co. [2011-D-356-357, dated 11-2-2011] (para 19),
    • West Coast Waterbase (P.) Ltd. v. State of Gujarat [2016] 95 VST 370 (Guj.) (para 20),
    • Collector of Customs v. Krishna Sales (P.) Ltd. AIR 1994 SC 1239 (para 21),
    • Kalyani Global Engg. (P.) Ltd. v. Asstt. CCT [SCA No. 7391 of 2016, dated 4-8-2016] (para 21),
    • CCT v. A.R. Thermosets (P.) Ltd. [2016] 73 taxmann.com 254/58 GST 1 (SC) (para 22),
    • Ponds India Ltd. v. CIT 2009 taxmann.com 934 (SC) (para 23),
    • CCE v. Minwool Rock Fibers Ltd. 2012 (278) ELT 581 (SC) (para 24),
    • Sonal Products, In re [2019] 103 taxmann.com 280 (AAR – Guj.) (para 26),
    • T.T.K Pharma Ltd. v. Collector of Central Excise 1992 taxmann.com 242 (CEGAT – New Delhi) (para 27),
    • State of Maharashtra v. Bradma of India Ltd. [2005] 140 STC 17 (SC) (para 27),
    • Mauri Yeast India (P.) Ltd. v. State of UP 2008 (225) ELT 321 (SC) (para 27),
    • Alisha Foods, In re [2020] 113 taxmann.com 495/80 GST 65 (AAR – MP) (para 28),
    • CCE v. T.T.K Pharma Ltd. 2005 taxmann.com 262 (Bang. – CESTAT) (para 28),
    • CCE v. Connaught Plaza Restaurant (P.) Ltd. [2014] 52 taxmann.com 531 (SC) (para 41.1)
    • CCE v. Shree Baidyanath Ayurved Bhawan Ltd. 2009 taxmann.com 1041 (SC) (para 41.2).

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