9911796707
TMI Blog2019 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... he MGST Act. Further, henceforth for the purposes of this Advance Ruling, a reference to 'GST ACT' would mean CGST Act / MGST Act. 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED. M/s. Sun Pharmaceutical Industries Limited (hereinafter referred to as "Applicant') having its corporate head office at, "SUN HOUSE" Western Express Highway, Goregaon(E), Mumbai-400063 is engaged in the business of manufacturing and trading of pharmaceutical products, nutraceutical and allied products falling under Chapter 28 & 30 of the Customs Tariff Act, 1975 and is registered as per the GST laws. The Applicant is engaged in the production and marketing of a nutritional powder/food for special dietary use called Prohance - D which is specially designed to serve as a nutritional powder for people with Diabetics. The said product is sold in powder form and is required to be mixed with drinking water and used as a partial meal replacement/Breakfast replacement / Evening snack/healthy bedtime snack or as directed by a Physician/dietician for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BY THE APPLICANT IS "DIABETIC FOOD" ALONE AND IS CLASSIFIABLE UNDER HEADING 2106.90.91 TO CHAPTER 21 OF THE CUSTOMS TARIFF ACT 1975 Chapter 21 of Custom Tariff Act, 1975 covers "Miscellaneous edible preparations". Heading No.21.06 under the said Chapter covers "Food preparations not elsewhere specified or included". In other words, the Chapter Heading 2106 is residuary heading which covers all the products not specified elsewhere in the tariff. The relevant extract of the said heading is reproduced under for ready reference: HS Code Description of goods unit (1) (2) (3) 2106 Food preparations not elsewhere specified or included 2106 10 10 Protein concentrates and textured protein substances.............. Kg 2106 90 -Other: --- Soft drink concentrates: 2106 90 11 Sharbat.. Kg 2106 90 19 Other. Kg 2106 90 20 --- Pan masala Kg 2106 90 30 --- Betel nut product known as Kg "Supari"........ Kg 2106 90 40 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrines syrup Kg 2106 90 50 ---Compound preparations or making non-alcoholic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003] 154 ELT 187 = 2003 (1) TMI 160 - CEGAT, NEW DELHI where the court permitted the use of a Statute (Prevention of Food Adulteration Act, 1954) for HSN classification. The court accepted the decision in State of Maharashtra Vs. Baburao Ravaji Mharulkar, AIR 1985 SC 104 = 1984 (10) TMI 249 - SUPREME COURT, where it was observed that; "..the common parlance understanding of the term ice cream can be inferred by the definition of ice cream in Prevention of Food Adulteration Act, 1954 and the Rules made thereunder; that as per paragraph A.11.20.08 of Appendix B to the Rules, 1955 Ice cream shall contain not less than 10.0 per cent milk fat, 3.5 per cent protein and 36.0 per cent total solids except that when any of the aforesaid preparations contains fruits or nuts or both, the content of milk fat shall not be less than 8.0 per cent by weight; that in the case of State of State of Maharashtra Vs. Baburao Ravaji Mharulkar, AIR 1985 SC 104 = 1984 (10) TMI 249 - SUPREME COURT, the respondents were held to be liable for conviction as the ice cream sold by them was found to contain 5.95 percent of milk fat as against prescribed 10% milk fat and as the product in question does not conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osmetics Act, 1940 (23 of 1940) and rules made thereunder; (iii) does not claim to cure or mitigate any specific disease, disorder or condition (except for certain health benefit or such promotion claims) as may be permitted by the regulations made under this Act; (iv) does not include a narcotic drug or a psychotropic substance as defined in the Schedule of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) and rules made thereunder and substances listed in Schedules E and El of the Drugs and Cosmetics Rules, 1945; (2) "genetically engineered or modified food" means food and food ingredients composed of or containing genetically modified or engineered organisms obtained through modern biotechnology, or food and food ingredients produced from but not containing genetically modified or engineered organisms obtained through modern biotechnology; (3) "organic food" means food products that have been produced in accordance with specified organic production standards; (4) proprietary and novel food" means an article of food for which standards have not been specified but is not unsafe; Provided that such food does not contain any of the foods and ingred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intended use of the product. ......Emphasis Supplied Schedule VIII of the Notification stated above is extracted below for ready reference: Schedule - VIII [See regulations 3.(13), 6.(2)(1), 7.(2)(i), 8.(2)(i), 9.(2)(i) and 11.(1)(1)] List of prebiotic compounds S.No. Prebiotic Compounds 1. Polydextrose 2. Soyabean oligosaccharides 3. Isomalto-oligosaccharides 4. Fructo-oligosaccharides 5. Gluco-oligosaccharides 6. Xylo-oligosaccharides 7. Inulin 8. Isomaltulose 9. Gentio-ologsaccharides 10. Lactulose 11. Lactoferrin 12. Sugar alcohols such as lactitol, sorbitol, maltitol, inositol, isomalt 13. Galacto-oligosaccharides A combined reading of the above provisions clarifies that FSSAI recognized "food for special dietary uses" (specially processed or formulated to satisfy particular dietary requirements which may exist or arise because of certain physiological or specific health conditions such as diabetes) are recognized as a separate category of foods. FSSAI streamlines the purview of the said foods by providing a list of ingredients that must be contained for any food to qualify as a "food for special dietary uses". At this point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court above. Thus, it is pertinent to analyse whether the said food is covered under the definition of "Diabetic Food" or not. As stated above, the product under consideration is a specially designed nutritional powder which substitutes "sugar" for Maltodextrin, Fructose, Isomaltulose and Fibers (FOS, Inulin and Gum Arabic) to meetthe special dietary requirements of Diabetic people. It is pertinent to note that ingredients like Isomaltulose, FOS - Fructo oligosaccharides and Inulin are covered under Schedule VIII of the above-mentioned notification prescribed by FSSAI. Thus, the said product is treated as a "food for special dietary uses" under FSSAI. The product also has other features also like it being sugar free, having low GI, having high fiber, being rich in MUFA. Thus, in this respect, it can be safe to contend that "Prohance - D" is a diabetic food to meet the special dietary requirements of Diabetic people. PROHANCE-D CHOCOLATE IS CLASSIFIABLE UNDER CHAPTER HEADING 2106 90 91 IRRESPECTIVE OF THE COCOA CONTENT IN THE SAID PRODUCT Chapter 18 of the CTA, 1975 covers "Cocoa and Cocoa Preparations". Heading No. 18.06 of the said Chapter covers "Chocolate and other food prepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts which have the presence of Cocoa in it. However, we need to place reliance on Chapter 19 wherein products which have marginal content of Cocoa present in them are still classifiable under Chapter 19 and not Chapter 18. It is further submitted that Chapter 18 does not intend to cover any and all the food preparations containing cocoa. It is evident by the explanatory notes to the entry, which clearly states "The heading also includes all sugar confectionery containing cocoa ...................(other than those excluded in the General Explanatory Note to this Chapter)". It logically follows that since the explanatory notes speak about food preparations containing cocoa in general and not necessarily all the food preparations containing cocoa. Thus, diabetic food which exists as a separate entry (even though in the residuary portion of Hdg No.21.06) cannot be made to mean food preparations in general to be covered under Hdg No. 18.06. It is pertinent here to mention that there exists a similar distinction made in the explanatory notes to Chapter 19.01. Here, the entries under Heading No. 19.01 pertain to: a. food preparations of flour, groats, meal, starch or malt extract not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 2016 as a "Diabetic Food". Pertinent here to mention a judgment on point is that of The Commissioner of Central Excise vs. Britannia Industries. Ltd reported at 2005 (183) ELT 257 (Tri-Mumbai) = 2005 (1) TMI 168 - CESTAT, MUMBAI, the dispute in this case is regarding the classification of the product wafer which contain chocolate. The relevant extract of the case is: "3. Considering the material on record it is found that based on the classification of the Chocolate Cream placed between two sliced biscuits-wafers and the fact that the said Chocolate cream would be classifiable under heading 1803 do not enthuse us to classify the biscuits, in this case, on the ground as taken irrespective of the fact of percentage of Cocoa in the entity, the ground taken that the decision relied upon by the Commissioner (Appeals) in the appellant's own case vide order No. 802/86 dated 03/09/86 was as regards the classification in case of Bourbon Cream manufactured by the respondents in the year 1986, which was under the erstwhile tariff and was based on the applicability of ISI specification for use of chocolate and that decision cannot be applied to the facts of this case as ISI and the Preven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Chapter Heading 0404 as product containing natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included (as per the CTH reproduced hereinabove), but since the product imported by the appellant contains various other minerals and cocoa powder to the extent of 2.5%, the said product does not merit classification under Chapter Heading 0404. This would take us do the next available chapter heading which this product can be classified is 1901. The chapter notes of heading No. 1901 specifically indicates that the goods of headings 0401 to 0404 which do not have cocoa containing more than 5% by weight are classified under the said heading 1901. As is already recorded by us, there is no dispute as to the claim of the appellant that the imported goods contain cocoa of2.5%, and hence Chapter Note of Chapter Heading 1901 clearly applies to the goods imported and the product merits to be classified under 1901 as being specific entry. As against this, the Revenue's claim that the product fall under Chapter 2106 is misplaced as we agree with the contentions raised by the IA. Counsel that the said heading 2106 would cover the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al sweetener (Sucralose), Acidity regulator (Citric acid). Regulatory Category: FOOD FOR SPECIAL DIETARY USE. Food for people with Diabetes. DIRECTIONS FOR USE: 1. Take 175 ml of drinking water 2. Add 6 leveled scoops (Approx. 50g) of Prohance TM-D Chocolate Powder 3. Stir continuously until dissolved and consume immediately When to Consume ProhanceTM-D Chocolate? * As a partial meal replacement - 1 serving of ProhanceTM-D Chocolate can be used before a major meal (e.g., lunch/dinner), * or as a Breakfast replacement; * or as an Evening snack/healthy bedtime snack; * or as directed by your physician/dietician Additional submissions on 22-01.2019 A. PROHANCE - D IS A "FOOD PREPARATION" Since the term "Food Preparations" has not been defined under the CTA, 1975 nor under the GST law, reliance is required to be placed on other sources for interpreting the meaning of the term "Food" and "Food Preparations". Further, reliance can be placed on the Supreme Court judgment in the case of CCE Vs. Parle Exports (P) Ltd. reported at 1988 (38) ELT 741 = 1988 (11) TMI 108 - SUPREME COURT. In the said case, the issue was whether "non-alcoholic beverage" is eligible for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the General Explanatory Note to this Chapter) Here attention is drawn to the language of the explanatory notes which states that the heading includes certain goods which can be broken down into the following parts: (i) All sugar confectionery containing coca in 'any proportion' chocolate nougat); (ii) Sweetened cocoa powder; (iii) Chocolate Powder; (iv) Chocolate Spreads; and (v) in general, all food preparations containing cocoa (other than those excluded in the General Explanatory Note to this Chapter). At the outset, it is pertinent to note that the said heading covers "All sugar confectionaries containing cocoa in any proportion" as stated in the above extract. "Prohance - D (Chocolate)" is not a sugar confectionary and thus, is not covered under the said description of Heading 18.06. It is pertinent to note that the phrase "cocoa in any proportion" is specially used in context of "All sugar confectionaries" only. From this, we understand that the proportion of cocoa must be relevant /important for the other description of products that have been elucidated in the HSN explanatory notes. Other products that are specifically covered under the heading are sweete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chap Hdg 19.01 irrespective of the cocoa content in the said preparations. From the said heading, it can be inferred that a threshold of "5% cocoa" can be used to determine whether a "food preparation" contains a substantial amount of cocoa to be classified under Chapter 18.06. "Prohance - D (Chocolate)" contains 3% cocoa as a flavouring agent, merely to make the product more palatable to the taste buds of Diabetic consumers and to provide customers with a variety of flavours to choose from. Addition of 3% cocoa does not change the essential characteristic of the product under consideration. In this respect, "Prohance-D (Chocolate)" shall not be covered under the last description of the HSN Explanatory Note and thus, shall be squarely excluded from classification under Chapter Heading 18.06 of CTA. It is noted that none of the ingredients covered under Chapter 19 are used in making the said product. The only ingredient that maybe contentious is "maltodextrin" , which is a by-product of corn flour. However, it is important to understand the process by which maltodextrin is extracted from "corn flour" to determine whether the two can be deemed to be one and the same. The chemical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milk etc.) for human consumption. "Prohance-D (Chocolate)" is a food preparation meant to be consumed by people by dissolving the same in water/milk. It is thus a "food preparation", squarely covered under Chapter Heading 21.06 of the CTA. It is further to note that Tariff Item no. 2106 9091 of the CTA, specifically covers "Diabetic Foods". The product in question is marketed and sold as a "Diabetic Food". Thus, on the basis of the facts of the case as well as the perusal of Tariff Item no. 21.06 9091 it is clear that the product is squarely classifiable under the said Tariff Item as it is the most specific sub-heading entry available for "Prohance - D (Chocolate)" in the CTA. C. SPECIFIC ENTRY REGARDING SPECIFIC ITEM TO BE PREFERRED TO A GENERAL ENTRY - "PROHANCE-D" IS CLASSIFIABLE UNDER CHAPTER 21.06 OF THE CUSTOMS TARIFF ACT, 1975 In the alternative, if it is contended by the Department Representative that Chap. Hdg. 18.06 & T.I. No. 2106 9091 are competing entries, then reliance shall have to be placed on the General Rules of Interpretation to determine the appropriate classification of our product. Rule 3(a) of the General Rules of Interpretation states that a specific head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after it is exhaustively shown that the product was not covered in any specific heading. Hence it is pertinent to analyse whether Chap Hdg 21.06 of the CTA is more specific than Chap Hdg 18.06 which is residuary in nature. Chapter Heading 2106 of the CTA covers "Food Preparations not elsewhere specified". The interpretation of the said entry has two parts. First part covers food preparations which are specified under Chapter Heading 2106 of the CTA and thus, the entry is deemed to be "specific in nature" as the heading itself states that the said Food preparations are not elsewhere specified. Second part of the said heading covers food preparations which are not specified under the said heading and are not classifiable under any other heading. The second part is thus, a "residuary entry" for Food preparations, nowhere else classifiable. Tariff Item No. 2106 90910f the CTA specifically covers "Diabetic Foods". Thus, "Diabetic Foods" falls under the first interpretation of Chapter Heading 2106 and Tariff Item No. 2106 9091 is deemed to be the "specific entry" for the classification of "Diabetic Foods". Now that it has been established that Tariff Item no. 2106 9091 is the "specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9091 OF THE CTA In the alternative, if the authorities are of the view that both of the entries under consideration are "specific in nature", the classification of "Prohance - D (Chocolate)" shall be subject to Rule 3(b) and Rule 3(c) of the General Rules of Interpretation which states as under: RULE 3 When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (a) Mixtures, composite goods consisting of different materials or made of different components, and foods put up in sets for retail sale, which cannot be classified by reference (b) 3(2), shall be classified as if they consisted of the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich more than 25% by weight of one or more of red mud, press mud or blast furnace slag is used. If that be the case, then, in a classification dispute, an entry which is beneficial to the assessee requires to be appIied and the same has been done by the adjudicating authority. which has been confirmed bp the Tribunal. In the said case, both the competing entries dealt with the same product i.e "Slagwool" but with certain different specification. The latter of the two entries was was specifically introduced on a later date with a lower rate of duty payable on the same. In analysing the appropriate classification of the slagwool in question, Tribunal was of the view that in such type of disputes, an entry which is beneficial to the assessee requires to be applied, Here, the two entries under consideration is Chap Hdg 18.06 which covers "Food Preparations containing Cocoa" and Tariff Item no. 2106 9091 which covers "Diabetic Food". "Prohance - D (chocolate)" being a Diabetic Food containing cocoa satisfies conditions of both the entries. Although the essential characteristic of the product is "Diabetic Food" and "cocoa" is merely a flavouring agent, it may be argued that the cocoa c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packaged food and milk containing edible nuts with sugar or other ingredients, [other than Namkeens, bhujia, mixture, Chabena and similar edible preparations in ready for consumption form] The impugned product does not fit in the description given above. In the Schedule IV which covers products @ 28%, heading 2106 occurs at item no 9. The description is given below:- Food preparations not elsewhere specified or included i.e. Protein concentrates and textured protein substances, Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup, Compound preparations for making non-alcoholic beverages, Food flavouring material, Churna for pan, Custard powder. After going through the uses of the ingredients as described above we can say that the product is covered by the description 'Compound preparations for making non-alcoholic beverages'( it is mixture of various items i.e. Maltodextrin, Sunflower seed oil, Calcium Caeinate, Whey Protein Isolate, Isomaltulose etc as mentioned above) and taxable @28%.The product is a powder which when mixed with milk gives a non alcoholic beverage. 04. HEARI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te) manufactured by them as a diabetic food alone is classifiable under Heading 2106 90 91 of the Customs Tariff Act. The applicant has submitted that FSSAI has recognized "food for special dietary uses" (specially processed or formulated to satisfy particular dietary requirements which may exist or arise because of certain physiological or specific health conditions such as diabetes) as a separate category of foods and as per the definition of the term 'food' in Section 20 of the FSSAI Act and the Webster's international Dictionary and as per the Supreme Court judgment in the case of CCE Vs. Parle Exports (P) Ltd. reported at 1988 (38) ELT 741 = 1988 (11) TMI 108 - SUPREME COURT the product under consideration is covered under the definition of "Food". They have further submitted that the product under consideration is a specially designed nutritional powder which substitutes "sugar" for Maltodextrin, Fructose, etc., to meet the special dietary requirements of Diabetic people and since the said ingredients are treated as a 'food for special dietary uses" under FSSAI. The jurisdictional office has submitted that, as projected by the dealer on the internet, Prohance - D Powder cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption, plants, prior to harvesting, drugs and medicinal products, cosmetics, narcotic or psychotropic substances. As per Webster's international Dictionary food is defined as a "nutritive material absorbed or taken into the body of an organism which serve, for purposes of growth, work or repair and for the maintenance of the vital process." We find that the subject product is an edible substance consisting of nourishing and nutritive components such as carbohydrates, fats, proteins, essential mineral and vitamins and can be ingested and digested and provides nutrients to the human body. Hence we have no doubt that the subject product can be categorized as food. Now we shall discuss whether the subject product can be considered as a diabetic food. The Oxford Dictionary of Food & Nutrition by David A. Bender defines "diabetic foods" as under: "Diabetic foods- Loose term for foods that are specially formulated to be suitable for consumption by people with diabetes mellitus, generally low in carbohydrate (and specially sugar), and frequently containing *sorbitol, xylulose, or sugar derivatives that are slowly or incompletely absorbed" The GST Tariff, 2017 lists 'diabetic food ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s labelled as a "Food for special dietary uses or functional foods or nutraceuticals or health supplements or similar such foods" which is not represented for use as a conventional food and whereby such products may be formulated in the form of powders, granules, tablets, capsules, liquids, jelly and other dosage forms but not parenterals, and are meant for oral administration; (ii) such product does not include a drug............; (iii) does not claim to cure or mitigate any specific disease, (except for certain health benefit or such promotion claims) as may be permitted by the regulations made under this Act; (iv) does not include a narcotic drug or....................................; (2) "genetically engineered or modified food" means food and food ingredients composed of or containing genetically modified or engineered organisms obtained through modern biotechnology, or food and food ingredients produced from but not containing genetically modified or engineered organisms obtained through modern biotechnology; (3) "organic food"............... with specified organic production standards; (4) "proprietary and novel food" means an article of food for which standa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing food for special dietary use without prejudice to modifications for one or more of these nutrients rendered necessary by the intended use of the product. C. 10 Schedule VIII of the Notification stated above enumerates a list of prebiotic compounds which includes Fructo-oligosaccharides, Inulin and Isomaltulose (which are some of the ingredients used in the manufacture of the subject product. Hence it is seen that FSSAI recognises "food for special dietary uses" (specially processed or formualted to satisfy particular dietary requirements which may exist or arise because of certain physiological or specific health conditions such as diabetes) as a separate category of foods. We find that the subject product Prohance-D is a variation of another product i.e. Prohance, manufactured by the applicant. The ingredients of both are mentioned as under:- PROHANCE INGREDIENTS PROHANCE-D IN GREDIENTS MALTODEXTRIN MALTODEXTRIN SUNFLOWER SEED OIL HIGH OLEIC ACID SUNFLOWER SEED OIL (HIGH OLEIC ACID) CALCIUM CASEINATE CALCIUM CASEINATE WHEY PROTEIN ISOLATE WHEY PROTEIN ISOLATE SOY PROTEIN ISOLATE SOY PROTEIN ISOLATE RAPESEED OIL LOW ERUCIC ACID RAPESEED OIL LOW ERUCIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stitute for diabetics because it does not cause spikes in blood sugar associated with common sweeteners and can be used to replace sugar, fat, and flour. Normal digestion does not break inulin down into monosaccharides, and therefore it does not elevate blood sugar levels and may, therefore, be helpful in the management of diabetes. (iv) Myo-lnnositol is a carbocyclic sugar and a sugar alcohol with half the sweetness of sucrose (table sugar) and helps to promote proper utilization of the hormone insulin. (v) Sucralose is a zero-calorie artificial sweetener and is made from sugar in a multi-step chemical process in which 3 hydrogen-oxygen groups are replaced with chlorine atoms. Sucralose is commonly used as a sugar substitute in both cooking and baking and is calorie-free. Sucralose is 400-700 times sweeter than sugar and does not have a bitter aftertaste. Sucralose is said to have little or no effects on blood sugar and insulin levels. Sucralose may raise blood sugar and insulin levels in people who do not consume artificial sweeteners regularly. However, it probably has no effect on people who regularly use artificial sweeteners. (vi) The word "fructose" was coined in 1857 fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and some slow digestion agents. Though the preparation in question contains gum Arabic, it does not contains high amount of dietary fibre. A little amount of fibre as found in this preparation is found in all kinds of food and Prohance-D has no extra amount of fibre. It is also seen that there are no substances in its composition that help in slowing down of food moving through stomach and sugars moving to blood stream. In view of these deficiencies, the Prohance-D cannot be categorized as diabetic food. Now that we find that the said Prohance -D is not a diabetic food, we will take up the other issue raised by the applicant i.e. whether the same can be treated as a product classifiable under Chapter 1 8/19 of the Tariff. Chapter 18 of the Customs Tariff Act, 1975 covers "Cocoa and Cocoa Preparations" Prohance -D is definitely not a cocoa product. We agree with the contention of the applicant that the chocolate flavor is used in order to make the said product more appealing to the end consumer. We find that the basic product is Prohance and Prohance D is a variation of the basic product. We also find that the vanilla and chocolate flavours are just a kind of variation to attract ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
