Milk product classification for ice-cream supports sales tax exemption when milk remains the main constituent.

Ice-cream is treated as a milk product where milk remains its main constituent, even if minor ingredients such as dry fruits, essence, flavour or gum are added. In interpreting the exemption entry, the term is to be understood in common parlance and by its essential character, not by the presence of incidental additives. On that basis, turnover of ice-cream falls within the sales tax exemption under the notification dated 16 February 1965 issued under section 4 of the U.P. Sales Tax Act.

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Issues: Whether ice-cream is a milk product and its turnover is exempt from sales tax under the exemption notification issued under section 4 of the U.P. Sales Tax Act.

Analysis: A commodity is a milk product if it is produced from milk. Ice-cream, though it may contain dry fruits, essence, flavour or gum, retains milk as its main constituent. In interpreting the exemption entry, the expression must be understood in common parlance. The addition of minor ingredients does not alter the essential character of the commodity when it remains known as a milk product.

Conclusion: Ice-cream is a milk product and its turnover is exempt from sales tax under the notification dated 16 February 1965 issued under section 4 of the U.P. Sales Tax Act.

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