Page 127 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : JVS FOODS PVT. LTD. 365
is classified in Chapter 10 and FRK is not covered in the said chapter, cannot be
accepted.
5.7 The reference is drawn to Chapter Note 1(B) appended to the Chap-
ter 10, which reads as under :
“(B) The Chapter does not cover grains which have been hulled or other-
wise worked. However, rice, husked, milled, polished, glazed, parboiled or
broken remains classified in heading 1006.”
The Chapter Note, itself is categorically clear that otherwise worked grains are
not included, however, rice otherwise worked are included in Heading 1006.
FRK being fortified rice cannot be expelled from the said category and therefore,
even if FRK does not finds its mention under the said heading in specific term
cannot be held to be classified under other Chapter.
5.8 The contentions of the Ld. AAR holding preparations/processes on
rice which are beyond the scope of Chapter 10 have been classified in Chapter 19
of the GST Tariff, is based on absolutely wrong interpretation of the tariff entry.
The Ld. AAR, has classified the goods manufactured and supplied by the appel-
lant under the Chapter Heading 1904, which reads as under :
“Prepared foods obtained by the swelling or roasting of cereals or cereals
product (for example cornflakes); cereals [other than maize (corn)] in grain
form or in the form of flaked or other worked grains (except flour, groats
and meal), precooked or otherwise prepared, not elsewhere specified and
included”
Further the relevant extract of said chapter note (Chapter 19) is as below :
“For the purpose of heading 1904, the expression “otherwise prepared”
means prepared or processed to an extent beyond that provided for in the
heading of, or Notes to, Chapter 10 or 11.”
5.9 That the Ld. AAR has classified the goods manufactured and sup-
plied by the appellant under the Chapter Heading 1904, based on the Chapter
note. It is submitted that FRK by no stretch can be held to be prepared food or
food otherwise prepared rather FRK cannot be held to be a food.
5.10 Because it is the basic principle that the interpretation and classifi-
cation has to be given as per Chapter heading and sub-heading. Chapter 19 i.e.,
“Preparation of cereals, flour, starch or milk; pastrycooks’ products” as the head-
ing suggest preparation of cereals, flour, starch or milk into pastry products,
bakery products or confectionary products, the same has no connect whatsoever
with fortification and therefore, the FRK cannot be classified under the Chapter
Heading 1904.
5.11 That as general rule, classification is determined by the words
(terms) in the Headings and the Section and Chapter Notes that apply to them
unless the terms of the heading and the notes say otherwise. In other words, if
the goods to be classified are covered by the words in a heading and the Section
and Chapter Notes do not exclude classification in that heading, the heading ap-
plies. It is submitted that in the present case when heading itself does not cover
the goods intended to be classified, sub-heading, chapter note cannot be applied.
Therefore, when the heading of Chapter 19 itself, does not cover the goods, re-
sorting to chapter note is nothing but absolute wrong interpretation.

GST LAW TIMES  16th July 2020  127