Classification of goods— The present appeal has been filed against the Advance Ruling order.

The appellant had raised the following questions seeking advance ruling in the application for Advance Ruling filed by it.

“i). Whether the product viz. 'Paratha' i.e. various varieties of Paratha produced by the applicant merit classification under HSN Code 19059090?

ii). Whether the product, namely, 'Paratha' i.e. all varieties of Paratha produced by the applicant are chargeable to 5% GST (i.e. 2.5% SGST and 2.5% CGST) under Sl.No. 99A of Schedule-I of Notification No. 01/2017-CT (Rate) and Notification No. 01/2017-IT (Rate) dated 28-6-17?”

The Gujarat Authority for Advance Ruling observed that appellant's product i.e. Parathas are not ready for consumption product but requires 3-4 minutes of cooking as well as they are not akin to roti or chapattis which are primarily wheat flour product and HSN 1905 covers already prepared or cooked products whereas appellant's parathas requires 3-4 minutes cooking; Heading 2106 covers food preparations not elsewhere specified or included, used directly or after processing such as cooking. 

The main issue here is to decide the classification of the product viz. various types of paratha i.e. Malabar Paratha. Mixed Veg Paratha. Onion Paratha. Methi Paratha. Alu Paratha, Laccha Paratha. Mooli Paratha and Plain Paratha having common ingredient as wheat flour varying in composition from 36% to 62% and having other ingredients viz. Water, edible vegetable oil. salt, anti-oxidant etc. These Parathas are sold by appellant in packed and frozen condition and required to be cooked on pan or griddle for-3-4 minutes till the Paratha is golden brown on both sides. The detailed cooking instruction are provided on the packaging of respective Parathas.

The appellant in its submission stated that, their product i.e. various types of Parathas is classifiable under Heading 1905 which covers “Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products” and not under Heading 2106 which covers “Food preparations not elsewhere specified or included” as held by GAAR which is a residual entry.

Held that— the Parathas supplied by the appellant are different from Plain Chapatti or Roti and cannot be treated as or covered under the Category of Plain Chapatti or Roti and appropriate classification of Parathas would be under Chapter heading 2106.