Chuna for Pan Is Slaked Lime at 5%, Not a Food Preparation: GSTAT Rajkot

The Goods and Services Tax Appellate Tribunal, Rajkot dismissed seven Revenue appeals and held that chuna for pan remains slaked lime under tariff item 2522 20 00, not a food preparation at 18%.

The Goods and Services Tax Appellate Tribunal (GSTAT), Rajkot has held that chuna (lime) in slurry and paste form, made by physically mixing slaked lime with calcium carbonate, water and a little glycerin, is classifiable as slaked lime under tariff item 2522 20 00 at 5%, and not as a food preparation under tariff item 2106 90 99 at 18% [Commissioner of CGST & Central Excise, Rajkot v. Babu Lime Pvt. Ltd., 2026-juristway.com-3408-GSTAT(Rajkot)-GST].

The Bench of Pramod Kumar Rai, Member (Judicial), and Kishori Lal, Member (Technical) decided seven Revenue appeals under Section 112(3) of the Central Goods and Services Tax Act, 2017. A show cause notice dated 30 Aug 2023 under Section 74 proposed classification under Chapter 21; the demand, interest and equal penalty were confirmed, but the Commissioner (Appeals) set them aside.

The Revenue argued that Note 1 to Chapter 25 excludes products “obtained by mixing”, that the goods were food preparations because the company held a food safety licence for food additives, and that the company’s test reports were irrelevant to the legal effect of mixing.

The Tribunal held that every limb of Note 1 is subject to its opening words, “Except where their context … otherwise requires”, and the exclusion operates only where the heading’s context does not require otherwise. On admitted facts, the mixing was physical, slaked lime was the active ingredient, and the other ingredients were fillers, a diluent and a soothing agent. The goods remained slaked lime.

Independently, the goods were not “food preparations”: chuna is not consumed directly or after cooking, but applied in small quantities to betel leaf or mixed with areca nut and tobacco as an ingredient. A licence under a regulatory statute does not decide tariff classification, and the definition of food additive there, a substance not normally consumed as food by itself, supported the company.

Applying Rule 3(a) of the General Rules of Interpretation, heading 2522, which names slaked lime, is more specific than residuary heading 2106; under Rule 3(b), slaked lime gives the goods their essential character. The appeals were dismissed, leaving the extended‑period plea undecided.

2026-juristway.com-3408-GSTAT(Rajkot)-GST