The applicant was engaged into import of maize of popcorn variety (Popcorn maize) in bulk. After importing, this popcorn maize would be fumigated and cleaned prior to packing.
This processed clean popcorn corn, along with edible oil and salt would be mixed and packed in a bag and sold to restaurant owners and small popcorn sellers.
It filed an application for advance ruling to determine correct HSN code and rate of GST applicable on “Ready to cook popcorn premix i.e. Popcorn Maize with edible oil and salt”, sold in retail pack size ranging from 30 grams to 350 grams.
The Authority for Advance Ruling observed that products imported by the applicant were not sold in the same form as it was imported.
The applicant was importing corn under Chapter 1005 90 00, but it would fumigate and clean the same and mix it with edible oil and salt and then pack oil and salt and pack the said mix in bags of fixed weight.
Thus, the product imported by the applicant in the subject case was nothing but ready to use Popcorn mixed with salt and oil and would need only to be Microwaved/heated, etc for direct consumption. Therefore, it was held that product would be covered under Chapter 2008 19 90 of the GST Tariff and attracts GST at the rate of 12%.
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