Tariff classification of milk-based food preparation under specific heading 19019090 rejected residuary heading 21069099.

A milk-based food preparation composed predominantly of milk and milk derivatives was classified under heading 19019090 because its ingredient profile brought it within food preparations of goods of headings 0401 to 0404. The Tribunal treated heading 21069099 as a residuary entry usable only where no specific heading applies, and relied on HSN Explanatory Notes to Chapter 19 to support classification of milk-based preparations, including dietetic products. It also followed its earlier view on a similar product to reject classification under heading 2106. The impugned orders were set aside and the appeals were allowed with consequential relief.

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Issues: (i) Whether the imported product was correctly classifiable under heading 19019090 or under heading 21069099.

Analysis: The product was found to be predominantly composed of milk and milk derivatives, with cocoa content below the threshold that would exclude it from heading 1901. On the admitted ingredient composition, the product fell within the scope of food preparations of goods of headings 0401 to 0404. The HSN Explanatory Notes to Chapter 19 supported classification under heading 1901 for milk-based preparations used for dietetic purposes, while Chapter 21 was treated as a residuary entry applicable only when no specific heading covered the goods. The Tribunal also relied on its earlier view on a similar milk-based product to hold that such preparations do not fall under heading 2106.

Conclusion: The goods were held to be classifiable under heading 19019090 and not under heading 21069099, in favour of the assessee.

Final Conclusion: The impugned orders were set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: A milk-based food preparation falling within a specific tariff heading cannot be classified under a residuary heading merely because it contains additional ingredients, and HSN Explanatory Notes may be used to determine the correct classification.

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