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TMI Blog2012 (3) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... by them, namely "Yum Creamy" and "Yum Chusky" under the Central Excise Tariff Act, 1985 (CETA), and the eligibility of "Yum Chusky" for exemption under Notification No. 01/2011- CE dated 01/03/2011. 2. The applicant is a wholly owned subsidiary of an Indian company, namely, M/s Danone India Pvt. Ltd., which, in turn, is a wholly owned subsidiary of a foreign holding company M/s Danone Asia PTE Limited, Singapore. 3. After perusal of the application and consideration of the comments sent by the concerned Commissioner i.e. Commissioner of Central Excise, Rohtak, the Authority vide its Order dated 13th December, 2011 allowed the application for ruling on the following two questions. 1. What would be the classification of the fermented milk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f around 1280 C. Thereafter, the mixture is stored in a fermentation work tank wherein the bacterial culture is added to and it is left to stand for 7-8 hours, leading to the formation of fermented milk. The fermented milk so formed is then put in an agitator wherein it is blended into a creamy texture. This creamy product obtained is packed and sold as a fermented milk product. "Yum Chusky" has the following composition: (a) Water 30.15% (b) Whole cow milk 51.00% (c) Sugar 12.00% (d) Cocoa powder Gerkens 1.20% (e) Wheat flour 3.50% (f) Rice flour 1.70% (g) Chocolate flavor 0.06% (h) Vanilla flavour 0.03% (i) Vitamin 0.36% The manufacturing process of "Yum Chusky" also involves mixing all the ingredients together and passing the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Milk, i.e. full cream milk and partially or completely skimmed milk. (B) ......... (C) Butter Milk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream. (D) ............ (E) ............ The note further states that the products mentioned at items (A) to (E) above may contain, in addition to natural milk constituents, small quantities of stabilizing agents which serve to maintain the natural consistency of the product during transport in liquid state (disodium phosphate, trisodium citrate and calcium chloride, for instance) as well as very small quantities of anti-oxidants or of vitamins not normally found in the product. Certain of these products may also contain small quantities of chemicals (e.g., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of milk. It is a beverage manufactured by mixing water, sugar, cocoa powder, wheat / rice flour, flavours and vitamins in cow's milk and sterilizing the resultant mixture. 11. The HSN Explanatory Notes to Heading 0402 state, inter alia, that this heading does not cover (a) Curdled, fermented or acidified milk or cream (heading 0403) and (b) Beverages consisting of milk flavoured with cocoa or other substances (heading 2202). According to the HSN Explanatory Notes under Chapter 22, this chapter does not include any liquid dairy products of chapter 4. Further, Note (B)(2) under heading 2202 states that the heading includes beverages ready for consumption that are based on milk and cocoa. Therefore, any beverages based on milk and flavor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption, vide Serial No. 25 of the Table in the Notification No. 01/2011 dated 01/03/2011 subject to the applicant fulfilling the conditions of the said notification. 15. In the course of the arguments, Sh. Sumit Kumar, the learned AR, while agreeing with the applicant's contention, submitted that the classification in this case was dependent upon the composition of the products in question. Hence any change in the composition had the potential to bring about an alternation in the correct classification and it would have been preferable in such a case if the products had been tested and the composition firmed up so that the potential for any error in future in the matter of classification might be avoided. Shri Lakshmi Kumaran, in response ..... X X X X Extracts X X X X X X X X Extracts X X X X
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