Diabetic food classification prevails over beverage-preparation entry for a specially formulated dietary product.

Prohance-D (Chocolate) was treated as a specially formulated food for persons with diabetes because its composition, label and FSSAI description showed use as a diabetic dietary product with sugar substitutes and nutritional ingredients. The presence of cocoa for flavouring and dilution with water or milk did not alter its essential character. The HSN guidance under Heading 2106, including the reference to diabetic foods, supported classification under the specific diabetic-food entry rather than the general entry for compound preparations for non-alcoholic beverages. Accordingly, the product was classifiable under Tariff Item 2106 90 91 as diabetic food.

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Issues: Whether Prohance-D (Chocolate) was classifiable as "diabetic foods" under Tariff Item No. 2106 90 91 of the Customs Tariff Act, 1975 or as "compound preparations for making non-alcoholic beverages" under Tariff Item No. 2106 90 50.

Analysis: The product was found to be specially formulated for persons with diabetes, with ingredients such as sugar substitutes and dietary components intended for a diabetic meal-replacement product. Its label and FSSAI description supported the character of a food for special dietary use. The presence of cocoa for flavouring and the fact that the product is mixed with water or milk did not change its essential character. The HSN material under Heading 2106, especially the reference to diabetic foods, supported inclusion within the specific diabetic-food entry. The more specific description had to prevail over the general beverage-preparation entry.

Conclusion: The product was held classifiable under Tariff Item No. 2106 90 91 as diabetic food, and not under Tariff Item No. 2106 90 50.

Ratio Decidendi: A product specially formulated and marketed for diabetic dietary requirements, using sugar substitutes and targeted nutritional ingredients, is classifiable under the specific diabetic-food entry rather than a general entry for beverage preparations, even if it is consumed after dilution.

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