Food supplement classification under HSN 2106 depends on essential character, not drug licence or prophylactic labeling.

A GST classification note states that a product described as "Dry Powders containing Protein Powder with Vitamins & Minerals" is treated as a food supplement and classified under HSN 2106, not Chapter 3004. The product's label, composition, FSSAI licence and marketing were considered indicative of an edible preparation, while Chapter 30 was noted to exclude foods and beverages, including food supplements, under Note 1(a). It also states that a drug licence and a claimed prophylactic description do not by themselves make the product a medicament, because tariff classification depends on the product's essential character and actual composition rather than regulatory approval alone.

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Issues: (i) Whether the product "Dry Powders containing Protein Powder with Vitamins & Minerals" is classifiable under Chapter 3004 or under HSN 2106; (ii) whether approval under the drug licence and claimed prophylactic use make the product a medicament for GST classification.

Issue (i): Whether the product "Dry Powders containing Protein Powder with Vitamins & Minerals" is classifiable under Chapter 3004 or under HSN 2106.

Analysis: The product was found to be a food supplement and not a medicament. The label, composition, FSSAI licence, and the manner in which the product was marketed indicated that its essential character was that of an edible preparation. Chapter 30 excludes foods and beverages, including food supplements, by Note 1(a), while Chapter 21 covers protein concentrates and textured protein substances under HSN 2106. Applying the General Rules for Interpretation, the product was held to fall within the edible preparations classification rather than Chapter 30.

Conclusion: The product is classifiable under HSN 2106 and not under Chapter 3004.

Issue (ii): Whether approval under the drug licence and claimed prophylactic use make the product a medicament for GST classification.

Analysis: The existence of a drug licence and an approval said to relate to a fixed dose combination were held to be only relevant aids and not ative for tariff classification. The cited approval did not match the actual product composition, and the product was not shown to contain any specific curative or preventive ingredient profile that would convert it into a medicament. The claimed prophylactic description on the label was insufficient, because the product remained a food supplement in substance and use.

Conclusion: Drug licence approval and the claimed prophylactic description do not make the product a medicament.

Final Conclusion: The advance ruling classifying the product as a food supplement under HSN 2106 was sustained, and the appeal failed.

Ratio Decidendi: For GST classification, the tariff heading and chapter notes control; a product that is in substance a food supplement is excluded from Chapter 30, and a drug licence or regulatory approval does not by itself determine classification as a medicament.

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