Fortified milk product classified under HSN 0401 eligible for exemption

The application was deemed admissible as the issues were not pending elsewhere. The product, a variant of pouch milk fortified with vitamins and extracts, was classified under HSN 0401 and exempt under Entry No. 25. Despite additives, it was considered milk under the Tariff Act. The Authority found the product akin to pasteurized milk with vitamins, falling under HSN 0401 even with curcuminoids. A government circular clarified that such fortified milk is exempt under the specified entry. The ruling determined the applicant's product as classifiable under HSN 0401 and eligible for exemption.

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Issues:
1. Admissibility of the application
2. Classification of the product under HSN 0401 and exemption under Entry No. 25 of the Exemption Notification

Admissibility of the application:
The applicant sought an advance ruling regarding the classification of a variant of ready-to-consume pouch milk fortified with vitamins and small quantities of turmeric and black pepper extracts. The ruling was sought to determine if the product could be classified under HSN 0401 and exempt under a specific notification. The application was admitted as the issues raised were not pending or decided elsewhere under the GST Act.

Classification of the product under HSN 0401 and exemption under Entry No. 25:
The applicant argued that the product, despite the additives, remains milk as defined in the Tariff Act. The applicant provided evidence supporting the nutritional value of the additives and the production process, claiming that the product is akin to pasteurized milk fortified with vitamins. The Authority analyzed the relevant tariff classifications and explanatory notes, concluding that the product falls under HSN 0401 even with the addition of curcuminoids. Referring to a government circular, it was clarified that milk fortified with vitamins remains classified under HSN 0401, thus exempt under the specified entry. The ruling declared the applicant's product as classifiable under HSN 0401 and exempt under the relevant notification.

This detailed judgment thoroughly examined the arguments presented by the applicant and the revenue, interpreting the relevant legal provisions and explanatory notes to arrive at a conclusion regarding the classification and exemption status of the product in question.

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