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2019 (10) TMI 1016 - AAR - GSTClassification of goods - Flavoured Milk - to be classified under HSN 0402 99 90 or under 2202 99 30 or under any other Chapter? HELD THAT:- The headings 0401 is not relevant as it is related to milk & cream that is neither concentrated nor containing sugar or other sweetening matter and does not cover the flavoured milk. Tariff heading 0403 is also not relevant as the said heading is related to fermented or acidified milk, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa and the instant product is neither fermented nor acidified. Further, the tariff headings 0405 & 0406 are also not relevant as they are related to butter/fats derived from milk and cheese curd respectively and does not cover the instant product. The product in question i.e. “flavoured milk” cannot be covered under “whey” and hence it is not covered under HSN 0404 10. The residual entry of heading 0404 is tariff heading 0404 9000 which is related to the products having constituents of natural milk, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included - In the instant case, the “Flavoured Milk” is made out of milk (pasteurized / standardized) added with sugar, colour and flavour Therefore predominant part of the product is milk and naturally contain the constituents of natural milk. The said heading does not cover flavoured products. The applicant has relied upon the description of FSSAI on “Flavoured Milk”. Though the said Act deals with food safety and standards, it contains, under Schedule-11, The Milk and Milk Products Order, 1992. in accordance to which, under Section 2(f) “milk’ means milk of cow, buffalo, sheep, goat, or a mixture thereof either raw or processed in any manner and includes pasteurised, sterilized, recombined, flavoured, acidified, skimmed, toned, double toned, standardised or full cream milk - thus, “Milk” includes pasteurised, sterilized and flavoured milk. Therefore, the product of the applicant is covered under “Milk”. The “flavoured milk” is not a water based drink whereas the tariff heading 2202 deals with water based beverages and other non alcoholic beverages. Therefore it could be inferred that the pre-dominant part of the beverages covered under the heading 2202 is water. In the instant case the predominant constituent is milk and hence the “flavoured milk” does not merit classification under beverage containing milk, under tariff heading 2202 9930. but merits classification as milk, under tariff heading 0402 - Tariff heading 0402 covers “milk and cream, concentrated or containing added sugar or other sweetening matter’. The instant product ‘flavoured milk’ is covered under ‘milk’ as discussed already. Therefore the instant product merits classification under tariff heading 0402 99 90.
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