TMI Blog2020 (7) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... GI/VZU/INV/GST/104/2019 dated 24-02-2020 requesting for rejection of the applicant's plea for admission for advance ruling in terms of provisions of sub-section (2)of section 98 of CGST Act, 2017. This authority after examining the relevant proviso to sec 98(2), makes the observation that it is a fit case for rejection as the applicant approached the Authority for Advance Ruling for clarification while the case is still pending with the Revenue on the same issue i.e., with respect to the classification of the product under question. - AAR No. 20/AP/GST/2020 - - - Dated:- 17-7-2020 - SRI. D. RAMESH, AND SRI. M. SREEKANTH, MEMBER Represented by : Sri Mohd. Irshad Ahmed, FCA, LLB ORDER (Under sub-section (4) of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc., and colours. Being a milk based drink, the product is ready to drink and marketed in glass and PP bottles. 4. Questions raised before the authority: What is the appropriate chapter under the customs Tariff Act, 1975 (51 of 1975) under which the product Flavoured Milk can be classified as per the explanation (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28th June 2017? On Verification of basic information of the applicant, it is observed that the applicant falls under Central jurisdiction, i.e. Superintendent, Tirupathi -3 Range, Tirupathi CGST Division. Accordingly, the application has been forwarded to the jurisdictional officers and a copy marked to the State tax authorities to offer their remarks as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lavoured milk is classified under chapter 4 under the heading 04029990 of the Customs Tariff Act, 1975 (51 of 1975). The applicable tariff rate in respect of the above HSN code 0402 99 90 as per the Notification 1/2017-Central Tax (Rate) dt: 28th June 2017 as amended is 5%. The expression flavoured milk is not specifically defined in either the section or the chapter notes of the Customs Tariff Act, 1975 (51 of 1975) (CTA). The product my fall either under the chapter 4 or 22 of the CTA. Chapter 4 covers Daily produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included and chapter 22 covers Beverages, spirits and vinegar. The relevant headings under chapter 4 of the CTA is as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifically defined in either the section or the chapter notes of the Customs Tariff Act, 1975 (51 of 1975) (CTA). The product my fall either under the chapter 4 or 22 of the CTA. Chapter 4 covers Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included and chapter 22 covers Beverages, spirits and vinegar. The relevant headings under chapter 4 of the CTA is as under: b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character in so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 4 - Heading 0402 or 0403 Therefore, flavoured milk shall fall under chapter 4 in view of the submissions in para 12 supra. As referred to in para 7 ibid Heading 0403 covers buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream. Flavoured milk does not contain any of the base materials referred to in 0403 supra. Since none of these materials are included in flavoured milk, heading 0403 does not apply to flavoured milk. As per the General Rule i of Section 2 of the CTA the General Rules of Interpretation The titles of sections, chapters and sub-chapters are provided for case of reference only; for legal purpose classification shall be determined according to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her sold in open form or in sealed containers. As per the internal certification a copy of which is enclosed and marked as Exhibit A the main ingredient in flavoured milk is milk itself i.e. 90.96% as per the below table which further confirms the contention of the applicant that the more specific heading for flavoured milk is 0402 and not 2202 as the essential character of the flavoured milk is milk. Component % of component in flavoured milk Milk 90.96% Sugar 9.00 % Flavor 0.03% Colour 0.01% Total ..... X X X X Extracts X X X X X X X X Extracts X X X X
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