Milk products classification under Chapter 4 upheld where stabilizers preserved consistency and shelf life without adding impermissible ingredients.

Classification of milk shake mix, soft serve mix, coffee creamer and cream packed turned on Chapter Note 4 of Chapter 4, which covers products consisting of natural milk constituents, including products with added sugar, sweetening matter, flavouring, fruit or cocoa. The analysis states that the goods contained natural milk constituents with sugar and stabilizers used only to maintain consistency, emulsion, storage stability and shelf life, not to add impermissible ingredients outside Chapter 4. The HSN Explanatory Notes were treated as supporting the view that Heading 19.01 applies only where the product contains ingredients not permitted in Headings 04.01 to 04.04. On that basis, Heading 19.01 was rejected and the goods were classified under sub-heading 0404.90.

---

---

Issues: Whether milk shake mix and soft serve mix were classifiable under Heading 04.04 of the Central Excise Tariff or under Heading 19.01, and whether coffee creamer and cream packed also fell under Heading 04.04.

Analysis: The dispute turned on Chapter Note 4 of Chapter 4, which covers products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa. The products in question contained natural milk constituents with added sugar and stabilizers. The stabilizers were found to be used to maintain consistency, emulsion, storage stability and shelf life, and not to introduce ingredients outside Chapter 4. The HSN Explanatory Notes were treated as supporting the view that Chapter 19 applies only when the product contains ingredients not permitted in Headings 04.01 to 04.04. Since no such impermissible ingredient was shown, the reliance placed by the Revenue on the cited decisions was held to be inapposite.

Conclusion: Milk shake mix and soft serve mix were held classifiable under sub-heading 0404.90, and coffee creamer and cream packed were also held classifiable under the same heading. The classification under Heading 19.01 was rejected.

---