In re M/s. Italian Edibles Private Limited (GST AAR Madhya Pradesh)
Product in question i.e. ‘Militry Malai Mithai’ is a product made out of Skimmed Milk Powder, Sugar & Whey Powder as main ingredients with Emulsifiers etc. put up in small sachet/pouch in semi-liquid (paste) consistency, ready for consumption. The product cannot be termed as Dairy Product or Sugar Confectionery as already discussed above. However, there is no doubt that being edible preparation, manufactured under due license issued by concerned Government authorities, it would merit classification under Chapter 21 i.e. ‘Miscellaneous Edible Products’. Once the chapter is decided, a careful examination of different entries under Chapter 21, the quest for appropriate classification rests finally at 2106 90 99, the residual entry, as the product itself does not find specific place anywhere else in the Chapter 21. We thus conclude that the impugned product viz. ‘Militry Malai Mithai’ would merit classification as Miscellaneous Edible Product under Chapter Heading 2106 90 99, as ‘Sweetmeat’ and chargeable to GST as applicable.
Having observed as above, we further hold that the impugned goods shall be aptly classifiable under Chapter Head 2106 90 99 as ‘Sweetmeats’ and shall be entitled to benefit of Notification No.01/2017-Central Tax (Rate) dtd.28.06.2017 (as amended) and corresponding notification under MPGST Act,2017 at present attracting GST @5% Adv. [(2.5% CGST + 2.5% SGST) or 5% IGST as the case may be) as envisaged under Serial Number 101 Schedule I to the said Notification.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,(MADHYA PRADESH)
PROCEEDINGS
1. BRIEF FACTS OF THE CASE:
1.1. M/s. Italian Edibles Pvt. Ltd. Indore [hereinafter referred to as the Applicant] is engaged in the manufacture, supply and export of confectionary and dairy/ sweet product. The applicant manufactures various product including flavoured wafers, Milk chocolates, Milk compound chocolates and other dairy / sweet products.The applicant is having a GST registration with GSTIN 23AACCI2746N1ZG.
1.2. Further, the applicant is also engaged in the manufacture of an edible product under the brand name “Militry Malai Mithai”, which is, as per Applicant, identically known as “Rabdi’, and recognised as a ‘Mithai’ or ‘Misthan’ by the common parlance.it contains the following ingredients,-
i. Sugar
ii. Vegetable Fats
iii. Skimmed Milk Powder
iv. Whey Powder
v. Emulsifiers
vi. Flavours
1.3. The above product is packed into small sachets of around 4 grams each, 58 such sachets are then packed into a large pack used for selling to the distributors and retailers and the end customer would buy the small sachet and consume it after opening the same.
1.4. As per the report of government approved laboratory, the product manufactured by the applicant, having following chemical parameters., i.e.:-
