Papad is not limited to traditional round shape but can be of any desired shape and size

Last updated: 28 July 2021

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This ruling clarifies that papad is not restricted to traditional round shapes. Due to technological advancements, papad can now be manufactured in any desired shape and size. The Authority for Advance Ruling (AAR) in Gujarat found that the ingredients of the goods in question fall under Chapters 10 and 11 of the Customs Tariff Act, and the goods possess all characteristics of papad. Therefore, regardless of its form, papad is covered under the exemption notification.

Court :
AAR Gujarat

Brief :
In Re: Global Gruh Udyog [Advance Ruling No. GUJ/GAAR/R/21/2021 decided on July 8, 2021] Global Gruh Udyog ("the Applicant") raise issue w.r.t. classification of puri papad and unfried papad ("Impugned goods").

Citation :
[Advance Ruling No. GUJ/GAAR/R/21/2021 decided on July 8, 2021]

In Re: Global Gruh Udyog [Advance Ruling No. GUJ/GAAR/R/21/2021 decided on July 8, 2021] Global Gruh Udyog ("the Applicant") raise issue w.r.t. classification of puri papad and unfried papad ("Impugned goods").

The Hon'ble AAR, Gujarat noted that the ingredients of Impugned goods are covered under Chapter 10 and 11 of the Customs Tariff Act, 1975. Thus, the main issue is whether the Impugned goods can be termed as Papad.

Further, observed that serial no. 96 of the Notification No. 2/2017- Central Tax (Rate) dated June 28, 2017 (“Goods Exemption Notification”) reads as “Pappad, by whatever name it is known, except when served for consumption”. Therefore, all types of Papad as per trade/common parlance are covered under the said entry.

Furthermore, noted that Impugned goods have all the characteristics and ingredients of Papad. Traditionally Papad were made manually in round shape however, due to advancement in technology, Papad does not limit to same age old traditional round shaped Papad but can be in any desired shape and size. Thus, Impugned goods are classifiable under HSN 19059040.

FAQ :

Yes, papad is no longer limited to traditional round shapes. Advances in technology mean papad can be made in any desired shape and size.

The ingredients of papad are covered under Chapter 10 and 11 of the Customs Tariff Act, 1975.

No, the ruling indicates that papad, by whatever name it is known, is covered under the exemption notification regardless of its shape or size, as long as it is not served for consumption.

The Impugned goods, being papad of any shape and size, are classifiable under HSN 19059040.

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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