Tariff classification of partially skimmed milk powder turns on distinction from skimmed milk powder and favours the assessee.

Partially skimmed milk powder was held to be distinct from skimmed milk powder for tariff classification purposes. Applying the settled view that the expression "skimmed milk powder" refers to completely skimmed milk powder, the product could not be classified under the sub-heading for skimmed milk powder. It was instead classified under the residual sub-heading applicable to partially skimmed milk powder, in favour of the assessee.

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Issues: Classification of partially skimmed milk powder under sub-heading No. 0401.13 or sub-heading No. 0401.19 of the Central Excise Tariff Act, 1985.

Analysis: The product was found on chemical test to be partly skimmed milk powder. The classification dispute turned on whether partially skimmed milk powder could be treated as skimmed milk powder. The settled view, followed from the earlier High Court decision and its affirmation by the Supreme Court, was that partially skimmed milk powder is distinct from skimmed milk powder, and that the expression 'skimmed milk powder' refers to completely skimmed milk powder. The Tribunal applied the same classification approach previously accepted in another decision following that view.

Conclusion: The product falls under sub-heading No. 0401.19 and not under sub-heading No. 0401.13, in favour of the assessee.

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