Classification of goods— In the instant case, the applicant is selling readymade popcorn. According to him ready to eat (RTE) popcorn is obtained by popping the maize corn by using heating process which are subsequently coated with the palmolene oil, salt natural or artificial flavouring and spices.

In his opinion, Heading 1904 includes Prepared foods obtained by swelling or roasting of cereals or cereal products are covered under Tariff Heading 1904. Thus, the popcorn being manufactured by the Applicant by using the process of swelling by heating would merit classification under Heading 1904.

Question raised for advance ruling is as follows—

What would be the correct HSN classification and consequently rate of GST applicable on ‘Ready to Eat’ popcorn sold in retail packages?

As seen from the facts of the case the tariff heading ‘2008’ pertains to a class of commodities covering fruits, nuts and other parts of plants and not the preparations pertains to cereals etc., which are enumerated in the competing tariff entry ‘1904’. Therefore the commodity under question clearly does not fall under tariff head ‘2008’.

When a specific entry is available for enumerating the commodity ‘RTE popcorn’ to relegate it to the orphanage of the residuary entry will be against the principle of classification as held by Hon’ble Apex Court in the above precedents. Hence RTE popcorn is classifiable under tariff head ‘1904’ enumerated at Serial No. 15 of Schedule III of Notification No. 01/2017 dated: 28.06.2017.

Held that— HSN classification is ‘1904’ and the rate of tax is 9% SGST & CGST each.