Page 128 - GSTL_16th July 2020_Vol. 38_Part 3

366 GST LAW TIMES [ Vol. 38
5.12 It is again one of the general rule of interpretation that any refer-
ence in a heading to an article shall be taken to include a reference to that article
incomplete or unfinished, provided that, as presented, the incomplete or unfin-
ished article has the essential character of the complete or finished article. It has
already been clarified that FRK has the essential characteristics of rice rather it
nothing but fortification of natural rice thereby making it more nutritious keep-
ing intact its essential characteristics and form as well as the use. Therefore, FRK
albeit if not mixed with rice, then also can be classified under Chapter 10 because
when FRK being mixed with the rice the end use, characteristics and form would
be exactly the rice.
Personal hearing
6. A personal hearing in the matter was held on 17-3-2020. Shri Samir
Jain, Advocate, and Shri Sumit Bhargava, authorized representatives of the ap-
pellant, appeared for personal hearing on 17-3-2020. They reiterated the submis-
sions already made under grounds of appeal. They also submitted following ad-
ditional submission :
(i) That the question for determination before the Learned Authority
whether the Fortified Rice Kernels (FRK) will fall under classifica-
tion 1006 10 90 @ 5% or 1904 00 090 @ 18%.
(ii) That on the analysis of tariff read with Chapter notes and section
notes and rules of interpretation which are part of the tariff; the
products in question will fall under 1006 10 90 as per Chapter-10
Note 1(B) which reads as the chapter does not cover grains which have
been hulled or otherwise worked. However, rice, husked, milled, polished,
glazed, parboiled or broken remains classified in Heading 1006.
(iii) That on perusal of above definition, it is very clear that rice is specif-
ically mentioned and any husked, milled, polished rice etc. will fall
under 1006 and the product in question is a milled rice as per expert
opinion also and as per applicant and on analysis of manufacturing
process.
(iv) That the Chapter 19 pertains to preparations or ready to eat food
and the present goods in question are not the same, Chapter Head-
ing 1904 is an two parts end the Learned Authority has not consid-
ered the heading pertaining to “puffed” rice …… rice quoted with
sugar or Gur, commonly known as “murki” which attracted Nil rate
of duty and is addition to HSN in GST Tariff.
(v) That Chapter Heading 1904 pertaining to prepared foods…….. ce-
reals or cereal products (for example cornflakes... or included and
Chapter Heading 1904 90 00 will not include FRK in it as per expert
opinion and the reasons stated in their appeal.
(vi) That jurisdictional High Court Judgment in D.B. Civil Writ Petition
No. 7091/2019 [2019 (29) G.S.T.L. 222 (Raj.)] has issued notices on
the constitutional validity of section 96(2) pertaining to AAAR au-
thority which may be taken note of in the light of Apex Court
Judgment 2010 (11) SCC Page No. 1 = 2010 (261) E.L.T. 3 (S.C.).
(vii) That during the pendency of present application the DGGI authori-
ties have conducted a search and in spite of matter being sub-judice
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