Tariff classification of dairy preparations turns on Chapter Note limits; vitamins and non-natural milk constituents exclude Chapter 4 coverage.

Classification under Chapter 4 depends on the express terms of the heading and Chapter Note 4, which permits only the specified additives and covers products consisting of natural milk constituents. The product contained vitamins, which were not permitted additives, and its whey proteins and casein peptides were not treated as natural milk constituents in the tariff sense. On that reading, it did not answer Heading 0404 as other dairy produce or edible products of animal origin and instead fell within the residuary edible preparation heading under Heading 2107.91.

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Issues: Whether the product 'Surje' was correctly classifiable under Chapter Heading 0404 as other dairy produce or edible products of animal origin, or under Chapter Heading 2107.91 as an edible preparation not elsewhere specified or included.

Analysis: Classification had to be determined from the terms of the headings and the relative Chapter Notes. Chapter Note 4 of Chapter 4 covered butter milk, curdled milk, cream, yogurt, whey, curd, and products consisting of natural milk constituents, with only the specified additives of sugar or other sweetening matter, flavour, fruit or cocoa. The product contained vitamins, and the Tribunal held that vitamins were not permitted additives under that Note. It also held that whey proteins and casein peptides used in the product were not to be treated as natural milk constituents within the meaning of the Note, read in the context of the surrounding entries. The comparison between the Central Excise Tariff and HSN supported a narrower reading of Chapter 4, and the product did not answer the description of other dairy produce or edible products of animal origin under Heading 0404. On the contrary, the product was a composite dietary supplement not covered elsewhere and fell within the residuary edible preparation heading.

Conclusion: 'Surje' was not classifiable under Chapter Heading 0404 and was correctly classifiable under Chapter Heading 2107.91. The appeal of the department succeeded.

Ratio Decidendi: A product claiming classification under Chapter 4 must satisfy the express terms of the heading and chapter note, and where the specified additives are exceeded or the ingredients are not natural milk constituents in the relevant tariff sense, the product falls outside Chapter 0404 and is classifiable under the appropriate residuary edible-preparation heading.

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