Instant Mix Flours are classifiable under HSN 2106 90 and taxable at 18% under GST

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Classification of goods - Gujarat Goods and Services Tax Act

Case Details: Authority for Advance Rulings, Gujarat Gajanand Foods ( P.) Ltd., In re - [2021] 130 taxmann.com 465 (AAR - GUJARAT)

Judiciary and Counsel Details

    • Sanjay Saxena and Arun Richard, Member
    • Nishant Shukla, C.A for the Applicant.

Facts of the Case

The applicant was engaged in the business of supplying various instant mix flours. It submitted that flour would remain flour even after mixing it with some spices and condiments and the basic characteristics of flour would not change. It filed an application for advance ruling to determine classification and determination of rate of tax of instant mix flours supplied by it.

AAR Held

The Authority for Advance Ruling observed that the products of the applicant contained spices and other ingredients in different proportions, which were not mentioned in the Chapter Heading 1106 or the relevant Explanatory Notes of HSN. Therefore, the products would not be covered under Chapter Heading 1106. However, entry at Sr. No. 23 of Schedule – III of Notification No. 1/2017-Central Tax (Rate), dated 28-6-17 provides that HSN 2106 includes food preparations not elsewhere specified or included. Since, these products were not specifically mentioned under any specific Tariff item, these products of applicant i.e. Instant Mix Flours were appropriately classifiable under HSN 2106 and taxable at 18%.

Case Review

List of Cases Referred to

    • West Coast Waterbase (P.) Ltd. v. State of Gujrat [2016] 95 VST 370 (Guj.) (para 2)
    • Dipak Kumar Kantilal Chotai, In re [2021] 123 taxmann.com 269 (AAR – Guj.) (para 5.6)
    • Samsung India Electronics (P.) Ltd. v. State of Gujrat [Special Civil Application No. 6109 of 2019, date 28-3-2019] (para 6)
    • Collector of Central Excise v. Dhiren Chemical Industries 2001 taxmann.com 332 (SC) (para 7.2)
    • State of Maharashtra v. Bradma of India Ltd. [2005] 140 STC 17 (SC) (para 7.5)
    • Mauri Yeast India (P.) Ltd. v. State of U.P. 2008 (225) ELT 321 (SC) (para 7.5)
    • Manilal Commodities (P.) Ltd. v. Collector of Customs 1992 (59) ELT 189 (Trib.) (para 7.6)
    • Commissioner of Customs, C.G.O v. Sonam International 2012 (275) ELT 326 (All.) (para 7.6)
    • Collector of Central Excise v. Wood Polymers Ltd. 1997 taxmann.com 264 (SC) (para 8.1)
    • CCE v. Minwool Rock Fibers Ltd. 2012 (278) ELT 581 (SC) (para 8.2)
    • CCE v. R.M Foods [2010] 2 taxmann.com 945 (Ahd. – CESTAT) (para 19).

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