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2021 (4) TMI 1292 - APPELLATE AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESHClassification of goods - HSN code - flavoured milk - whether it is to be considered under either 0402 or 2202 90 30? - Notification No.1/2017 Central Tax (Rate) dt: 28.6.2017 - whether ‘flavoured milk’ can be considered a beverage containing milk? - HELD THAT:- A beverage is "(chiefly in commercial use) a drink other than water. It is a liquid for drinking especially such liquid other than water (as tea, milk, fruit juice, beer) usually prepared (as by flavouring, heating, admixing) before being consumed". The instant product, the flavoured milk is undoubtedly a beverage containing milk. It is moreover, a ‘preparation’ which was proved, substantiating the present argument. Even though the product in question is a dairy produce and also an edible product of animal origin, the qualifier that it is “not elsewhere specified or included” makes it ineligible to be classified under the chapter 4. The product in dispute as it is already specified and included under chapter 22 dealing with goods /items of “Beverages, spirits and vinegar” makes it ineligible to be classified under chapter 4 - the commodity ‘flavoured milk’ merits classification under beverage containing milk under tariff heading 2202 90 30. The rate of tax applicable for the said tariff item is 12% GST (6% CGST + 6% SGST) under entry no. 50 of Schedule II of Notification No.1/2017 – Central (Rate) dated 28.06.2017 as amended. The Ruling of the AAR is in tune with legal position and it needs no interference and the appeal is accordingly dismissed.
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