Page 146 - GSTL_ 28th May 2020_Vol 36_Part 4

592 GST LAW TIMES [ Vol. 36
or solid (including frozen) form, and may be concentrated (e.g., in powder)
or preserved.
The heading also covers fresh or preserved products consisting of milk con-
stituents, which do not have the same composition as the natural product,
provided they are not more specifically covered elsewhere. Thus the head-
ing includes products which lack one or more natural milk constituents,
milk to which natural milk constituents have been added (to obtain, for ex-
ample, a protein-rich product).
Apart from natural milk constituents and the additives mentioned in the
General Explanatory Note to this Chapter, the products of this heading may
also contain added sugar or other sweetening matter.
The powdered products of this heading, particularly whey, may contain
small quantities of added lactic ferments, with a view to their use in pre-
pared meat products or as additives for animal feed.
The heading does not cover :
(a) Skimmed milk or reconstituted milk having the same qualita-
tive and quantitative composition as natural milk (heading
04.01 or 04.02).
(b) Whey cheese (heading 04.06).
(c) Products obtained from whey, containing by weight more
than 95% lactose, expressed as anhydrous lactose, calculated
on the dry matter (heading 17412).
(d) Food preparations based on natural milk constituents but con-
taining other substances not allowed in the products of this
Chapter (in particular, heading 19.01).
(e) Albumins (including concentrates of two or more whey pro-
teins, containing by weight more than 80% whey proteins, cal-
culated on the dry matter) (heading 35.02) or globulins (heading
35.04).
From the above, the following are deduced :
 ‘Milk’, to be covered in this chapter are ‘full cream milk or partially
or skimmed milk’
 Beverages consisting of milk flavoured with cocoa or other sub-
stances (heading 22.02) are not covered under CTH 0402
 CTH 0404 90 covers fresh or preserved products consisting of milk
constituents, which do not have the same composition as the natural
product, provided they are not more specifically covered elsewhere
6.4 From the constituents of the product in hand furnished by the ap-
plicant, it is seen that the product consists of Standardised/Toned milk (87 to
89%) without removal of Fat content thereon, which is sweetened with around
10% of sugar to which stabilizers, flavours, etc. are added and is supplied in
tetrapacks after necessary processes. The products are marketed as ‘Thick shakes’
and is ready for consumption as stated by the applicant. Comparing the product
and those covered under CTH 0402/0404, it is evident that the product in hand
consisting of milk flavoured with vanilla/strawberry/mango/cocoa powder be-
ing ready for consumption beverages based on Milk is specifically excluded un-
der CTH 0402, as seen from the Explanatory notes to HSN of the said chapter
and hence not classifiable under CTH 0402; Also the product being not ‘Whey’,

GST LAW TIMES  28th May 2020  146