TaxTMI 
TaxTMI 
2020 (1) TMI 1123
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....lk powder used in hotels, restaurants, etc. as well as households for making instant tea and coffee and known as "milk powder" in common trade parlance. 3. As per applicant, the main constituent of 'Instant Tea Whitener' would be standard liquid milk which would undergone various process like filtration, separation, pasteurization, evaporation, homogenization etc. to obtain 'Instant Tea Whitener' in powdered form, which would then be packed in unit container/ sachets. For manufacturing of 1 kg. of 'Instant Tea Whitener', following raw materials would be used :- (i) 2.70 kg. of standard liquid milk. (ii) 160 g. of Vegetable fat (iii) 354 g. of Maltodextrin (iv) 210 g. Sugar 4. The followin....
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....eading having more general description. 5.4 According to Rule 3b of the Rules of Interpretation, in case Rule 3a is not applicable, the goods shall be classified as if they consisted of the material/ raw material which give their essential character. In the applicant's case, the essential character to 'Instant Tea Whitener' is given by liquid milk. The said product cannot be manufactured without milk. All other ingredients are ancillary in nature. 5.5 The applicant also paid reliance on various case laws to vindicate their stand that the 'Instant Tea Whitener' proposed to be manufactured by them is most appropriately covered under Chapter Heading 0402. 6. The applicant was granted a personal hearing on 5-8-....
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....e applicant are - (I) What shall be classification of the above product manufactured and proposed to be supplied by the applicant? (Il) What shall be rate of GST on the said product in terms of the above classification? 10. Here, we observe that the Chapter Heading 0402 of Custom Tariff Act, 1975 reads as under :- Tariff Item Description of Goods Unit Rate of Duty Standard Preferential Areas (1) (2) (3) (4) (5) 0402 Milk and cream, concentrated or containing added sugar or other sweetening matter 0402 20 - In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5% : 0402 10 10 --- Skimmed Milk......................... kg. 60% - ....
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....) by another substance (for example, oleic fats) (Heading 1901 or 2106); or (c) Albumins (including concentrates of two or more whey proteins, containing by weight more than 80% whey proteins, calculated on the dry matter) (Heading 3502) or globulin (Heading 3504). 11. As per Sl. No. 8 of Schedule-I of Notification No. 1/2017-lntegrated Tax (Rate), dated 28-6-2017, Chapter Heading 0402 covers : 8 0402 Milk and cream, concentrated or containing added sugar or other sweetening matter, including skimmed milk powder, milk food for babies (other than condensed milk) 12. Now, we observe that the product in question i.e., 'Instant Tea Whitener' is a product made out of standard liquid milk which undergoes vari....