Page 140 - GSTL_ 28th May 2020_Vol 36_Part 4

586 GST LAW TIMES [ Vol. 36
stabilizers, sweeteners or flavouring agents. Therefore, flavoured
milk is classifiable under Chapter 4 even if they contain any of the
aforementioned additives. This is in line with the position under the
FSS Regulations as well.
2.5 The applicant has relied on Catena of judicial precedents stating to
squarely support the view that the flavoured milk is classifiable as milk under
Chapter Heading 0402 and not under any other heading including under Chap-
ter 22 which are :
 Gujarat Coop. Milk Marketing Federation Ltd. v. State of U.P. [2017 (5)
G.S.T.L. 351 (All.)]
 Commissioner of Central Excise v. Amrit Food [2015 (324) E.L.T. 418
(S.C.)]
 Fun Foods Pvt. Ltd. v. Commissioner of Central Excise, Jaipur-I [2017
(348) E.L.T. 357 (Tri. - Del.)]
 Nestle India Limited v. Commissioner of Central Excise [2001 (132)
E.L.T. 134 (Tri. - Del.)]
 Nestle India Limited v. Commissioner of Central Excise [2018 (8) G.S.T.L.
211]
 Advance Ruling in Danone Foods and Beverages [2012 (280) E.L.T. 563]
 Commissioner of Sales Tax v. Neera Drinks [1999 UPTC 1130].
2.6 The applicant has further stated that while in terms of the foregoing
submissions, the most appropriate classification of the product in question is
0402, without prejudice, if a view is taken that flavoured milk is not milk itself
but a product containing milk/milk constituents, the product would still be clas-
sifiable under Chapter 4, specifically under Entry 0404 90 00 which covers prod-
uct consisting of natural milk constituents, whether or not containing added sug-
ar or other sweetening matter, not elsewhere specified or included. In this re-
gard, reference is made to the decision in Nestle India Limited v. Commissioner of
Central Excise [2017 (6) G.S.T.L. 483 (Tri. - Del.)]. It was held that Nutritious Milk,
a product made up of milk predominantly and small quantity of artificial fla-
vouring substance is classifiable under 0404 90 00 as a product consisting of nat-
ural milk constituents. It was also held that the addition of small quantities of
other substances will not change the essential character of the product and the
product will remain nutritious milk only. Therefore, the Applicant has claimed
that the product (flavoured milk) is most appropriately classifiable under Chap-
ter 4, specifically Tariff Entry 0402 99 90, or alternatively, Tariff Entry 0404 90 00.
3.1 The applicant was extended an opportunity to be heard in person
on 26-9-2019. The representatives of the applicant company appeared. They gave
a written submission and stated that the product ‘Winkin’ Cow’ is flavoured
milk which has 80% and more milk along with flavour, sugar and stabilizers.
They submitted that the products should be classified under 0402 or 0404 90 00.
The product has milk, solids also. They submitted various judgments under VAT
and Central Excise where such products were classified under 0404/02. They
submitted copies of invoices. They undertook to submit detailed manufacturing
processes and ingredients list with proportion, copies of FSSAI certification for
food addition, labelling etc. in two weeks time.

GST LAW TIMES  28th May 2020  140