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2022 (9) TMI 254 - AAAR - GSTClassification of goods - rate of GST - Flavoured Milk - classifiable under Chapter 0402 or under Chapter 2202? - HELD THAT:- The Customs Tariff adopted for the purposes of GST is aligned to HSN and the arrangement of the products in the Tariff has been done in a schematic manner. The initial Sections/Chapters contain live animals, not processed goods and the later Chapters contain the processed goods. i.e., Section I covers ‘Live Animals and Animal Produce’ in which Chapter 4 covers ‘Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included’ and Section IV covers Prepared Foodstuffs, Beverages, Spirits And Vinegar, Tobacco And Manufactured Tobacco Substitutes’ in which Chapter 22 covers ‘Beverages, spirits and vinegar’. From the classification scheme adopted in the Tariff, it can be seen that products in their natural state are classified in the initial chapters and when such products undergoes certain process, they are classified in the later chapters. In the present case, flavoured milk is not the natural form of milk but obtained after application of specific processes on the milk - NDDB being a nodal agency in the Dairy products and the ‘Flavoured Milk’ is categorized as Beverage as can be seen above. Further, Beverage as per the Oxford dictionary definition is ‘any type of drink except water’. Thus, it becomes evident that the product in hand is a Beverage. In similar facts of case the Appellate Authority for Advance Ruling, Tamil Nadu, in the case of IN RE: M/S. BRITANNIA INDUSTRIES LIMITED [2021 (8) TMI 193 - APPELLATE AUTHORITY ADVANCE RULING, TAMILNADU], held that flavoured milk is not classifiable under Tariff Heading 0402/0404 but classifiable under CTH 2202 99 30. The appeal filed by appellant M/s. Gujarat Co-operative Milk Marketing Federation Ltd is rejected.
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