2021 (1) TMI 551

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....ed an application for Advance Ruling under Section 97 of the CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in FORM GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is an Association of persons and is registered under the Goods and Services Act, 2017, engaged in processing of milk and milk products. They manufacture Skimmed Milk Powder and Whole Milk powder, classify the same under tariff number 0402, taxable at 5% and supply the same to government schools through Zilla panchayaths under "Ksheera Bhagya yojana" scheme as part of the midday meal scheme to school children. Further, at the request of the Government of Karnataka to supply milk po....

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....rom milk or cream". The fat or protein content or both of the milk or cream is adjusted, only to comply with the compositional requirements, in sub item (b) of item 2 of this sub-regulation, by addition or withdrawal of milk constituents in such a way as not to alter the whey protein to casein ration of the milk or cream being adjusted. Products shall be free from added whey and whey preparations. 5.2 Milk Powder should have the following composition specifications. Component Composition Moisture, Maximum, %(m/m) 5.0 Milk Fat, % (m/m) Minimum 26.0 and less than 42.0 Milk Protein in Milk solids not fat, Minimum % (m/m 34 Titrable acidity, Maximum (ml 0.1 NaOH for 10g Solids not-fat) - 18 Insolubility Index, Maximum, ml 2 T....

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....by Sri. Lokesh Reddy, C.A. and authorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 7.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 7.3 The Applicant seeks advance ruling in respect of the classification of the product "Chacolate Milk Powder". The contentions of the applicant and the nature of the product have been examined and the sam....

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.... product does not satisfy the requirement of the colour of the whole milk powder, in terms of BIS standards and thereby even on this account also the instant product can't be considered as whole milk powder. In view of the above, the applicant contends that their product "Chacolate Milk Powder" merits classification under heading 1806. 7.7 We proceed to examine the instant issue. In this regard it is pertinent to mention here that in respect of Tariff Headings and determination of Classification, Explanations (iii) and (iv) appended to the Notification No. 01/2017- Central Tax (Rate), dated 28.06.2017 are relevant. The said explanations are reproduced below for ease of reference. (iii) "Tariff item", "sub-heading" "heading" and "Chapter"....