Popcorn classified under tariff heading 1904 10 90 and taxable at 18% GST: AAR
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- Last Updated on 7 March, 2022
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Case Details: Authority for Advance Rulings, Uttar Pradesh Shyam Sundar Sharma, In re - [2021] 124 taxmann.com 609 (AAR- UTTAR PRADESH)
Judiciary and Counsel Details
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- Abhishek Chauhan and Dinesh Kumar Verma, JJ.
- Ms. Shuchi Sethi, CA & AR for the Applicant.
Facts of the Case
The applicant was engaged in the business of manufacturing and sale of eatable item ready to eat ‘Popcorn’ with various flavours in retail packs. It filed an application for advance ruling to determine the classification and GST rate on supply of Popcorn.
AAR Held
The Authority for Advance Ruling observed that the product “Popcorn” would be manufactured from maize Corn by heating in an electric kettle and due to the heat of kettle, it turned into puffed corns/popcorns and then to make it palatable other ingredients like salt and turmeric powder would be added to it and a negligible quantity of oil would also be used for the purpose of sticking the salt and turmeric on the maize/corn. Thus it would be a ready to eat prepared food and shall fit under the description as ‘Prepared foods obtained by the roasting of cereal’. This description would attract classification under chapter sub-heading 1904 10 90 and shall be taxable at 18% under GST.
List of Cases Referred to
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- CCE v. Frito Lay India [2010] 3 taxmann.com 339 (SC) (para 4)
- Collector of Central Excise v. Nektar Fruit Products 1996 taxmann.com 28 (CEGAT – New Delhi) (para 4)
- Pepsi Foods Ltd. v. CC&CE 2002 taxmann.com 321 (CEGAT – New Delhi) (para 4)
- Pepsico India Holdings (P.) Ltd. v. CCE&ST 2015 (318) ELT 278 (Tri. – Delhi) (para 4)
- ID Fresh Food (India) (P.) Ltd., In re [2020] 117 taxmann.com 55/82 GST 442 (AAR – Kar.) (para 4)
- Indo International Industries v. Commissioner of Sales Tax 1981 taxmann.com 385 (SC) (para 12)
- Oswal Agro Mills Ltd. v. Collector of Central Excise 1993 (66) ELT 37 (SC) (para 13)
- CCE v. Connaught Plaza Restaurant (P.) Ltd. [2014] 52 taxmann.com 531 (SC) (para 13)
- L.M.L. Ltd. v. Commissioner of Customs [Civil Appeal No. 3764 of 2003, dated 21-9-2010] (para 16).
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