Transaction date: - 21-12-2006, 11-11-2006 & 26-10-2006
Held : All are covered under Entry E-1
Facts of the Case:
This is a set of two applications posing a similar question
for determinations.
One of the Applicants is manufacturer of edible snacks such
as Farsan, Bhakarvadi, Kothimbirvadi, Mutter Karanji etc. applicant sales
these products to retailers and wholesalers.
Another applicant is manufacturer of Biscuits selling under
brand names as Glucose, Milk & Honey and Mango Cream etc.
Application is preferred relaying on the explanation given
to M/S Monginis Foods Pvt Ltd. Stating therein that products cakes, pastries,
paneer finger rolls are covered by schedule entry C.107 (11)(f).
Submission of the Applicant:
Applicant also argued that products are also covered under
C.94, which is schedule entry for farsan. As "Mutter Karanji" is called as "Ghugras"
in Gujarat State and the same is included in the list of notified items of the
schedule entry for farsan in Gujarat.
Alternative contention was that, the product would be
covered by the schedule entry C-107 (11)(f) being ‘food stuffs’. The items
"Mutter Karanji" and "Kothimbirvadi" are both manufactured by one of the
applicants and they are not served in a hotel or in a eating house and
therefore they are not "ready to serve food"
In support of the above Contention applicant relayed on
-
DDQ in case of
M/S Fritolay (DDQ 11-2002/Adm/74-75/B-7 dt.29-1-2004)
-
MSTT Judgment
in the case of M/s Chitale Bandhu, S.A. No. 442 of 1990 dt. 20-9-1991.
-
MSTT Judgment
in case of M/S Narang Hotel Pvt Ltd., S.A.No.835 of 1995 dt 27-4-2007.
Another applicant who is a manufacture of Biscuits, solds
under different brands argued that his products covered under schedule entry
C-107 (11)(f) being "ready to eat food". For this they relayed on MSTT
decision in the case of M/S Narang Hotel Pvt. Ltd., S.A.No. 635 of 1995.
Views of the Department
Commissioner has also seen the sample of the product and it
is observed by him that "Mutter Karanji" and "Kothimbirvadi" are also sold in
"ready to eat" form so according to him in such a Contingency, the DDQ in the
case of M/S Parampara Food Products (Cited Supra) become applicable.
Commissioner also observed that "Mutter Karanji" through
called, as "Ghugras" in Gujarat cannot be covered under entry C-94.
In his opinion a plain reading of notification suffices and
any interpretation as to whether "Mutter Karanji" is Ghugras or not is
unwarranted. If there were any intention of including "Mutter Karanji" in the
notification for "farsan" it would have been specifically included.
Notifications are not amenable to liberal interpretation.
Commissioner is also of the view that, the exclusion clause
in the main entry excludes "ready to eat" foods, which is tautology for "ready
to serve" foods as they both imply the same. As mentioned earlier, the "ready
to serve" foods excluded those foods, which are ready and served in any other
place than a hotel. i.e. shop etc. In his opinion "Mutter Karanji", "Kothimbirvadi"
and "Biscuits" are "ready to eat" products. Therefore, they will also be
excluded from the scope of schedule entry C107 (11)(f).
Held
The commissioner held all the three products 1) Mutter
Karanji 2) Kothimbirvadi 3) Biscuits are covered by entry E-1 which attract
tax rate12.5%.
[M/s Uttara Foods & Feeds Pvt Ltd., M/S Krishna Food
Industries, No.DDQ-11/2001/Adm-5/2/B-5. No.DDQ 11/2001/Adm-5/3/B-5]
