The Applicant, ID Fresh Food (India) Pvt. Ltd is a food products company involved in the preparation and supply of a wide range of ready to cook, fresh foods including idli & dosa batter, Parotas, Chapatis, curd, paneer, whole wheat paratha, and Malabar Parota. The Appellant manufactures Parotas using natural ingredients.

The Parotas need to be heated on a pan or Tawa, before consumption, for improved taste and crispiness. In summary, the Parota is in ready to cook conditions. The Parotas have a shelf life ranging from 3-7 days. The Malabar Parotas can be stored in a cool and dry place and have a shelf life of up to 4 days. The wheat parotas are recommended to be refrigerated for retaining the freshness up to 7 days. These products are not frozen products but only needs to be refrigerated to retain its freshness for its stated shelf life of 7 days.

The Appellant approached the AAR seeking a ruling on the issue of whether the preparation of Whole Wheat paratha and Malabar parotta be classified under Chapter heading 1905, attracting GST at the rate of 5%. The AAR vide its order ruled that the product parota is classified under Chapter Heading 2106 and is not covered entry No. 994 of Schedule I to the Notification No.1/2017-Central Tax (Rate) dated June 28, 2017, as amended vide Notification No.34/2017-Central Tax (Rate) dated October 13, 2017. so 18% of Goods and Service Tax is applicable. The appellate authority consisting of Judicial Member, D.P. Nagendra Kumar and Accountant Member, M.S. Srikar ruled that the ruling given by AAR wherein 18% GST applicable on Whole Wheat Parota and Malabar Parota is void ab initio on the grounds that it was vitiated by the process of suppression of material facts.