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2017 (3) TMI 1409 - AT - Central ExciseClassification of goods - NIDO Nutritious milk for growing kids - classified under CTH 0404 90 90 attracting ‘nil’ rate of duty or under CTH 1901 90 90, attracting 16% rate of duty? - the adjudicating authority held that the item which is added (Maltodextrine) is in the nature of sweetening matter whose addition is permissible under 0404. However, he held that addition of artificial flavouring substance is an item which is not permitted to be added to natural milk constituent in 0404 - Held that: - The disputed product, ‘NIDO Nutritious milk for growing kids’ is made up of milk predominantly but is added with a few additional ingredients - addition of stabilizer while making the aforesaid preparation would not take it out from Heading 04.01. Thus, it needs to be determined as to whether the addition of artificial flavour would make it a food preparation and therefore, it would no more remain diary produce and would be covered under heading 19.01. Where flavouring agent of 0.03% of the total composition is added, which does not change the basic characteristic of the product and the product remains a nutritious milk drink only - the appropriate classification for the impugned product will be under Chapter tariff item 0404 90 00 of the Central Excise Tariff Act, 1985, as contended by the appellant - appeal allowed - decided in favor of appellant.
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