The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning,...
The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.
The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning, mixed with a salt and citric acid solution for slating purposes, roasting, and adding turmeric powder does not take away the product from the ambit of Chapter 12 in terms of either the chapter note or the HSN notes. As per Rule 3(b) of the GRI, owing to the mixture, when the goods are classifiable under two or more headings, the product shall be classified as if it consisted of the material or component that gives them their essential character, in so far as this criterion is applicable. The product is classifiable under Chapter 12 of the Customs Tariff Heading, specifically CTH 12074090.
The applicant deals in various types of seed mixes, two of which are 'Mix Mukhwas' and 'Roasted Til & Ajwain', which they claim are made up of mixed roasted and salted seeds.
The applicant stated that in both products, as is evident from the table supra, there is a dominant quantity of sesamum seeds: 60% in Mix Mukhwas and 97% in Roasted Til and Ajwain. Further, in Mix Mukhwas, in addition to sesamum seeds, Dhanadal content is 27%, which, when combined, totals 87%. There is no element of pan masala, sugar or chocolate, preservatives, or any other artificial flavouring substances used by them. These products are purchased by customers who desire to consume sesamum seeds normally as a seed mix. The applicant is currently selling both products by classifying them under HSN 12074090.
The applicant sought an advance ruling on the issue of whether the products 'Mix Mukhwas' and 'Roasted Til & Ajwain' prepared and sold are covered by HSN code 12074090.
Yet another issue raised was whether the products 'Mix Mukhwas' and 'Roasted Til & Ajwain' prepared and sold are covered by entry no. 70 of Schedule I of Notification No.1/2017-Central Tax (Rate) and taxed at the rate of 2.5% CGST and 2.5% SGST or 5% IGST.
The AAR held that the products 'Mix Mukhwas' and 'Roasted Til & Ajwain' prepared and sold are covered by Tariff Item 12074090 of the Customs Tariff Act, 1975. The products 'Mix Mukhwas' and 'Roasted Til & Ajwain' prepared and sold are covered by entry no. 70 of Schedule I of notification No. 1/2017-CT(R) dated June 28, 2017 and taxed at the rate of 2.5% CGST, 2.5% SGST, or 5% IGST.
Applicant's Name: M/s Bhagat Dhanadal Corporation
Date: 30/05/2024