Essential character test governs classification of Instant Tea Whitener as a milk-based product under GST tariff heading 0402.

Instant Tea Whitener was classified under Chapter Heading 0402 because the product consisted of processed liquid milk mixed with ancillary ingredients, and milk supplied its essential character. Applying the General Rules for Interpretation, the specific tariff description prevailed over a broader reading of the mixture, and the product was understood in common parlance as a milk-based whitener within the same entry. The classification under Heading 0402 was therefore accepted, and GST applies at the rate prescribed for that notified tariff entry.

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Issues: Whether the product 'Instant Tea Whitener' is classifiable under Chapter Heading 0402 of the GST Tariff and, if so, the applicable GST rate.

Analysis: The product was found to be made from standard liquid milk subjected to processing and mixed with ancillary ingredients. The Authority applied the tariff description of Chapter Heading 0402, which covers milk and cream concentrated or containing added sugar or other sweetening matter, and relied on the General Rules for Interpretation, particularly the principles governing specific description and essential character. On the facts, milk was held to provide the essential character of the product, while the other ingredients were treated as ancillary. The product was also understood in common parlance as milk powder or an instant tea whitener falling within the same tariff entry. Accordingly, the classification under Chapter Heading 0402 was accepted, with GST payable at the rate prescribed for that entry under the relevant notification.

Conclusion: The product 'Instant Tea Whitener' is classifiable under Chapter Heading 0402 and is chargeable to GST at the applicable rate under the notified tariff entry.

Ratio Decidendi: For tariff classification, the heading that specifically describes the goods prevails, and where a product is a mixture or composite good, its classification is determined by the component giving it its essential character.

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