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Issues: Whether flavoured milk sold by the assessee is classifiable under tariff heading 0402 or tariff heading 2202.
Analysis: The assessment and appellate orders classifying flavoured milk under heading 2202 were interfered with. The matter was remanded for fresh assessment with a direction to treat flavoured milk as falling under tariff heading 0402. The question relating to taxability and rate of tax on conversion charges from milk to milk powder was left open.
Conclusion: Flavoured milk is to be assessed under tariff heading 0402, not 2202, and the assessment was set aside and remanded for fresh consideration on the remaining issue.
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