Classification of goods—  The present appeal has been filed against the advance ruling order. The appellant has sought Advance Ruling on the following question

“What would be the classification of ‘Flavoured Milk’ sold under trade name of Power Sip?”

The appellant has submitted that they are engaged in manufacture of goods like Ice Cream, ready to eat food and various milk products. Among other product, they are producing flavored milk under the trade name of “Power Sip”. As per the appellant such flavoured milk merits classification under Heading 04029990 of the GST Tariff. 

The advance ruling authority ruled that ‘Flavoured Milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule of the Customs Tariff’ Act, 1975 as a ‘beverage containing milk’.”

The main issue here is to decide the classification of the product viz. flavored milk 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’ as per above definitions and Chapter Note 1 explaining the scope of Heading 0402 and therefore are undoubtedly excluded from the purview of Tariff Heading 0402. 

Held that— We reject the appeal filed by appellant and uphold the Advance Ruling order passed by Gujarat Authority for Advance Ruling.