Case Law Details
In re Vadilal Industries Ltd (GST AAAR Gujarat)
What would be the classification of ‘Flavoured Milk’ sold under trade name of Power Sip?
The main issue here is to decide the classification of the product viz. flavored milk Milk’ sold under trade name of Power Sip, produced from standardization of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurization and homogenization and then mixing of sugar and various flavors and finally bottling.
In the present case, as per the product labels submitted by appellant, the Milk constituent is ‘Double Toned Milk’ which are not ‘Full Cream Milk’ or ‘Skimmed Milk’ and therefore are undoubtedly excluded from the purview of Tariff Heading 0402. Therefore, irrespective of the contentions that the product remains ‘Milk’ even with added flavours, it is clearly established that the ‘Milk’ referred to in this Tariff heading and the products of the appellant are not the same and on this ground alone the products in hand are not covered under Tariff Heading 0402. (Referred definition of cream milk, skimmed milk, standardized milk and toned milk as per Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 and explanatory note of Customs Tariff Heading 0402)
Furthermore, the relevant explanatory notes of CTH 0402 of the HSN clearly state that beverages consisting of milk flavoured with cocoa or other substances is specifically excluded from this chapter heading.
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