TaxTMI 
TaxTMI 
2019 (11) TMI 1326
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....erence to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: The applicant is registered under GST vide GSTIN - 37AABCT7907M1ZU. The applicant engaged in manufacturing of milk and milk products including flavoured milk. The applicant seeks clarification regarding the HSN code, and rate of duty on their outward supply of "flavoured milk". 4. Activities of the applicant: The applicant informed that; (i) Flavoured milk is a sweetened dairy drink made with milk, sugar, permissible colourings and artificial or natural flavourings; (ii) The brief manufacturing process of the flavoured milk is standardisation of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurisation, and homogenisation and then mixing of sugar and flavours and finally bottling. The applicant provided process flow chart of flavoured milk. 5. Questions raised before the authority: The applicant had filed an application in form GST AR....
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....shall be paid by the taxable person. Under Section 9 (1) of CGST Act, 2017, on the recommendations of the Council, the Central Government notified specifying schedule wise GST rates on goods vide Notification no.1/2017 - Central Tax (Rate) dated 28.06.2017 (hereinafter referred to as the "said notification" for brevity) as detailed below: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and (vi) 0.125 per cent. in respect of goods specified in Schedule VI Under Schedule III, at entry number 453, it is mentioned that goods which are not specified in Schedules I, II, IV, V, VI of the said Notification attract Central Tax rate of 9%. The Explanation to the said notification is as follows; (i) ... (ii)(a) ... (ii)(b) .......
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....flavoured milk. Under the GST provisions the interpretation of the said Notification is to be under the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). 8.4 The applicant opines that flavoured milk is covered in Chapter 4 of FS to CTA, 1974. We examine this aspect. The Section I of FS to CTA, 1975 deals with Live Animals; Animal Products. The Chapter 4, deals goods of "DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY; EDIBLE PRODUCTS OF ANIMAL ORIGIN, NOT ELSEWHERE SPECIFIED OR INCLUDED. Therefore, any items/goods are specified or included elsewhere in the Schedule; those items/goods do not fall under Chapter 4. The applicant stated that flavoured milk is a preparation. Section IV deals with goods of "Prepared food stuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes" and the Chapter 22 deals with items/goods of "Beverages, Spirits and Vinegar". The tariff item no. 2202 99 30 covers "Beverages containing milk". Now, we discuss flavoured milk is classifiable under the said tariff item or otherwise. 8.5 The Hon'ble Madras High Court in the case of the State of Tamil Nadu vs Tvl. Ganesh Corporation,....
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....xpression, 'Milk' means full cream milk or partially or completely skimmed milk. 2 ............... Heading No. Sub-heading No. Description of goods Rate of duty (1) (2) (3) (4) 04.01 0401.11 Flavoured milk, whether sweetened or not, put up in unit containers and ordinarily intended for sale. Nil. 2.2 It is submitted that even under the 8 digit code introduced from 28-2-2005, flavoured milk could only fall under Chapter 4 Heading No. 0402, more particularly under sub-heading No. 0402 99 90 reading as under :- CHAPTER 4 DAIRY PRODUCE; BIRD'S EGGS; NATURAL HONEY; EDIBLE PRODUCTS OF ANIMAL ORIGIN, NOT ELSEWHERE SPECIFIED OR INCLUDED Notes :- 1. The expression 'milk' means full cream milk or partially or completely skimmed milk. Tariff Item Description of goods Unit Rate of duty (1) (2) (3) (4) 0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter. 0402 Milk and cream, concentrated or containing added sugar or other....
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.... in the corresponding entry in column (3) of the said Table, namely :- Sr. No. Notification No. and date Amendments (1) (2) (3) 1. 3/2005-Central Excise dated the 24th February, 2005 [G.S.R. 95(E), dated the 24th February, 2005] In the said notification, in the Table, after S. No. 11 and the entries relating thereto, the following S. No. and entries shall be inserted, namely :- (1) (2) (3) (4) "11A. 2202 90 30 Flavoured milk of animal origin Nil" 2.6 The basic Notification No. 3/2005-C.E. is a general exemption notification prescribing effective rate for various excisable goods, and it is under this general exemption notification that Sr. No. 11A has been inserted from 15-6-2007 thereby specifying nil rate of duty for flavoured milk of animal origin. As the product in question was classified as flavoured milk under SH No. 0401.11 of the Tariff as it stood till 28-2-2005 and since it is not disputed by the Revenue even at this stage that Amul Kool/Amul Kool Cafe is flavoured milk, the respondents would now treat the goods as chargeable to nil rate of duty from 15-6-2007. However, in the process, the petitioners' r....
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....otification, the authority which has issued the show-cause notice on 16-4-2007 would simply proceed on the basis of the said classification code given by the Central Government in the Notification dated 15-6-2007 to which the petitioners have already given reply on 10-7-2007. 3. Having heard learned counsel for the petitioners, we are of the view that looking to the subject matter of the controversy raised in the petition, this appears to be an eminently fit case where the petitioners should make a representation to the Central Government. Accordingly, if the petitioners make such a representation within one week from today, it is expected that the Central Government will decide the same as expeditiously as possible and preferably within one month from the date of receipt of the representation. 4. As regards pendency of the proceedings arising from the show-cause notice, it will be open to the petitioners to make a request before the Commissioner of Central Excise to adjourn the hearing suitably so as to await the decision of the Central Government on the representation. We are sure that such a request will be considered by the Commissioner in the proper perspecti....
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....ate is 12% (6% CGST and 6% SGST) under entry No. 50 of Schedule II of Notification No.1/2017 - Central (Rate) dated 28.06.2017 as amended. ============= Document 1 Irumala TIRUMALA MILK PRODUCTS PVT LTD FOOD SAFETY MANAGEMENT SYSTEM TMPL/GDR/HP-6 Process flow chart with 5m Evaluation of Sterilized Flavoured Milk LACTALIS REVISION NO 6 INDIA ISSUE DATE 20.12.2017 Man Power Material Method Equipment Medium Out puts(Waste) Receiving of Milk (5°C) RMRD team Raw Milk 1.CANS 2.Tankers Cans, Tankers RMRD area RMRD team Raw Milk Weighing Weighing Weighing team QC analysis 1. Weigh Bowl 2.Weigh bridge RMRD area Weighing area RMRD 1eam Raw Milk 1.Filtration 2.Filtration 1.Cloth filter RMRD area 2.Stainless steel strainer RMRD team Raw Milk Dumping Dump tank RMRD a-za RMRD team Row Milk 2.Filtrution Processing team Raw milk Pumping Processing team Raw milk Processing team Row milk Deaeration Cloth filter RMRD area Pumping pump Milk loading crea Deaerator Milk loading area Chilling (4°C) ....