TMI Blog2022 (12) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... sifiable under Chapter 04 under heading 0401 20 00. Rate of GST - HELD THAT:- Since, the product of the applicant, classifiable under Chapter Sub-Heading No. 0401 20 00, is pasteurized milk which is neither concentrated nor contains added sugar or other sweetening material and it is not Ultra High Temperature Milk, as declared by the applicant, it is eligible for the benefits under Notification No. 2/2017-Central Tax (Rate) dated 28-06-2017. - JHR/AAR/2022-23/02 - - - Dated:- 27-4-2022 - SRI M.V. BADARI PRASAD, AND SRI PRADEEP KUMAR, MEMBER Present for the applicant : 1. Sri Aditya Shah, Chartered Accountant; Note: Under Section 100 of the JGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of JGST Act 2017, within a period of 30 days from the date of service of this order. PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Pax Act, 2017 and the Jharkhand Goods Service Tax Act, 2017) The present application has been filed under Section 97(1) of the Central Goods and Services Tax Act, 2017 and the Jharkhand Goods and Services Tax Act, 2017 [herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submission, the product Osam Samridhi will help Tea Vendors to prepare milk more conveniently and will help the vendors to prepare more cups of tea and helping them to reduce the cost of vendors and increase their income. 5. The applicant submitted the percentage wise composition of the said product, which is as under: Component % of component Milk (2% Fat and 9% SNF) 99.85% Stabiliser- Xanthan Gum (E 425) - Carrageenan (E 407) 00.10% Flavour 00.05% 6. The applicant submitted the process detail of preparing Osam Snmridhi , which is as under:- (a) Cow milk procured from farmers is standardized to 2 percent fat and 9 percent SNF. (b) Flavors and stabilizers are added to the batch as per our specifications. (c) Milk is pasteurized. (d) Milk is packed and stored at 4 degree Celsius. (e) Milk is dispatched. (f) On the basis of research made, the applicant found that in cities at least 30-35 % of milk gets consumed for tea making. After doing different R D activities, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 8. The applicant further submitted the judicial pronouncement in the matter of:- (a) Hon'ble Allahabad High Court in the case of Gujrat Co-op Milk Marketing Federation Ltd. Vs State of U.P. 2017 (5) GSTL 351 (All): 2017 Tax Pub (ST) 1622 has held that Flavoured Milk is a form of milk as it is neither a derivative of the milk or a milk product. It is like hot and cold milk which remains milk even if sugar is added to it. It does not lose its basic characters of milk by heating or cooling or addition of sugar or any permitted colour, essence or flavour. The addition of permitted colour or flavour does not transform the milk into any other thing. (b) Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs Amrit Foods 2015 (324) ELT 418 (SC) has held that Main purpose of stabilizer was to maintain the product consistency during storage and transportation as well as to improve the shelf life and merely because it improved the body and texture of the product and added some smoothness thereto, that would not change the basic character of the product ANALYSIS AND FINDINGS 9. We have gone through the records of the issue as well as subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Pub (ST) 1622 has held that: Flavoured Milk is a form of milk as it is neither a derivative of the milk or a milk product. It is like hot and cold milk which remains milk even if sugar is added to it. It does not lose its basic characters of milk by heating or cooling or addition of sugar or any permitted colour, essence or flavour. The addition of permitted colour or flavour does not transform the milk into any other thing. Also, the Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs Amrit Foods 2015 (324) ELT 418 (SC) held that Main purpose of stabilizer was to maintain the product consistency during storage and transportation as well as to improve the shelf life and merely because it improved the body and texture of the product anti added some smoothness thereto, that would not change the basic character of the product . Further, Chapter 4 of Customs Tariff Act, 1975 reads as under: Tariff Description 0401 Milk And Cream, Not concentrated nor containing added sugar or other Sweetening Matter 0401 20 00 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk Since, the product of the applicant, classifiable under Chapter Sub-Heading No. 0401 20 00, is pasteurized milk which is neither concentrated nor contains added sugar or other sweetening material and it is not Ultra High Temperature Milk, as declared by the applicant, it is eligible for the benefits under Notification No. 2/2017-Central Tax (Rate) dated 28-06-2017. ORDER 13. For reasons as discussed in the body of the order, the question is answered thus, - Question :- What would be the classification of 'Flavoured Milk for Tea Preparation'? Answer :- As per discussion above, the product 'Flavoured Milk for Tea Preparation' is found to be Tea Milk and it should be classified under Chapter 04 under heading 0401 20 00. Question :- What would be the rate of GST applicable on the said products? Answer :- The said product is exempted from GST vide SI. No 25 of Not. No. 2/2017-Central Tax (Rate) dated 28-06-2017. This ruling is valid subject to the provisions under Section 103(2) until and unless declared void ..... X X X X Extracts X X X X X X X X Extracts X X X X
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