Tariff classification of partially skimmed milk powder turns on commercial identity and binding precedent, with relief for the assessee.

A dairy product containing milk fat above 5% and marketed as partially skimmed milk powder with additives was classifiable under sub-heading 0401.19, not 0401.13. The tariff description had to be applied according to the commercial identity and technical character of the goods, and a prior High Court ruling on an identical product had already held that partially skimmed milk powder is outside the expression skimmed milk powder. In the absence of any legally sustainable distinction, the authorities could not ignore that binding ruling. The impugned classification and demand were therefore set aside, and relief was granted to the assessee on classification.

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Issues: Whether the product 'New Sapan Dairy Special' was classifiable under sub-heading 0401.13 as skimmed milk powder, or under sub-heading 0401.19 as partially skimmed milk powder.

Analysis: The product contained milk fat above 5% and was described and marketed as partially skimmed milk powder with additives. The relevant tariff entries had to be understood in the light of the commercial identity of the product, the technical and scientific standards for milk powder, and the distinction between skimmed milk powder and partially skimmed milk powder. A prior High Court ruling on an identical dairy product had already held that partially skimmed milk powder does not fall within the expression skimmed milk powder, and the lower authorities were not justified in ignoring that clear ruling.

Conclusion: The product was not classifiable under sub-heading 0401.13 and was rightly classifiable under sub-heading 0401.19; the appeal succeeds in favour of the assessee.

Final Conclusion: The impugned classification and demand were set aside, and the assessee obtained relief on classification.

Ratio Decidendi: Where a tariff description is clear and a prior binding ruling on an identical product squarely covers the facts, classification must follow the commercial and technical identity of the goods, and authorities should not depart from that ruling without a legally sustainable distinction.

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