Dismissed

M/s Gujarat Co-operative Milk Marketing Federation Ltd.

GST AAAR22 Aug 2022GUJ/GAAAR/APPEAL/2022/17

Case brief

AI extract

What is this about?

The Gujarat Appellate Authority rejected the appeal of Gujarat Cooperative Milk Marketing Federation Ltd., upholding the GAAR ruling that flavoured milk is classified as a beverage containing milk (Heading 2202 99 30) rather than as milk (Heading 0402), citing FSSAI definitions and HSN explanatory notes.

What did the court decide?

The appeal was rejected, upholding the Advance Ruling that classifies flavoured milk under CTH 2202 99 30.

M/s Gujarat Co-operative Milk Marketing Federation Ltd. — GST and Indirect Tax | GST AAAR (2022)

¶1

¶2

GUJAITAT AI'PELLATE AUTHORITY^{FOR ADVANCE ITULING} GOODS AND SERVICES TAX limor D/5,II.AJYA KAR BHAVAN, ASHRAM^ROAD, 'tYMAHKFT

¶3

AI.IMEDAI}AD^_ 380 OO9.

¶4

ADVANCE RULING(APPEAL) NO.^{GUJ/GAAA[VAPPEAL1212}1} lt (lN APPLICATION NO. Advance Ruling/SGST&CGST^{12021 /AfVl0)}

¶5

Date:dl .08.2022

¶6

Nameandaddressofthe appellant	M/s.Gujarat Co-operativeMilkMarketing FederationLtd, Opp.Old Pilot Dairy,^NearFootball^Ground, Kankaria, Ahmedabad-380022
GSTIN ofthe appellant	24AAAAGss88Qrz2
AdvanceRulingNo.andDate	GUJ/GAANN041202Idated^{20.0I .202t}
Dateofappeal	t2.04.2021
DateofPersonalHearing	28.07.2022
Presentforthe appellant	ShriAmalDave, Advocate

¶7

At the outset we would like^{to make it clear that the provisions of the Central} Goods and Services Tax^{Act, 2017 and Gujarat Goodsand Services Tax Act, 2077} (hereinafter referred to as the'CGST Act,20l7'^{and the'GGSTAct,20l7')are in pari} materia and have the same^{provisions in like matterand differ from each other onlyon a} few specific provisions. Therefore,^{unless a mention is particularlymade to such} dissimilar provisions,^{a referenceto the CGST Act,2017 wouldalso mean reference to} the corresponding similar^{provisions in the GGST Act,2017.}

¶8

Z. The present appeal^{has been filed under Section 100 of the CGST Act,2017and} the GGST Act, 2017) by^{IWs. Gujarat Co-operativeMilk Marketing Federation Ltd} (hereinafter referred to as Appellant)^{against the AdvanceItulingNo.} GUJ/GAAWP.I041202^{1 dated 20.01.2021.}

¶9

The appellant has sought^{AdvanceRulingon the followingquestion}

¶10

"What would be the classification of^'Flavoured Milk'?

¶11

The appellant has submitted^{that they are an apex bodyfor marketing of milk and} milk products^produced by^{various DistrictCo-operativeMilk ProducerUnions and they} are also running and^{managinga dairy called 'AmulFed' in Bhat, Gandhinagar producing} various milk products including^{flavored milk under the trade name of Amul Kool/Arnul} Caf6 meriting classification^{under Heading O4O29ggOof the GST Tariff. 1'he appellani} submitted that the^{processof productionof flavored milk is standardizationof fresh mlk} according to the fat contents^{and heating at certain temperaturefollowed by filtra}

¶12

¶13

pasteurization and homogenization and then mixing of sugar and various flavors and finally bottling.

¶14

5 The appellant submitted that adding flavors to milk does not change essential character of milk. The product namely flavoured milk is milk only and is sold, purchased and consumed as milk in trade and amongst consumers. Therefore their product is classifiable under HSN Code o402ggg} as the milk. The appellant relied upon the .iudgment^o1'Punjab and Haryana High Court in case of Food Specialties Lrd V/s Uol [199^{] (5 I} )^IILT 3 l0 (P & H) which is also affirmed by Supreme Courr wherein ir was held that Indian Standard specifications for milk powder issued by ISI as well as the standards under Prevention of Food Adulteration Rules, 1955 (pFA Rules) were relevant to decide even under the Central Excise law as to what was skimmed milk or partially/full skimmed milk; as per PFA Rules, product containing fat more than l.5yo and less than 26Yo is considered to be partially skimmed milk/powder and since fat content in product in question is 3%/4.5%, it is partially skimmed milk classifiable under HsN o+oz. Appellant also relied upon decision of CESTAT in case of Mehsana District co-operative Milk Producers Unions Ltd [2004 (167) ELT 456] wherein the Tribunal held that Chapter 4 of the Tariff covered all types of milk/milk powder, whether it was whole, partly skimmed or skimmed. The appellant also submitted that National Dairy Research Institute, Banglore also confirmed that flavored milk falls under Dairy produce as per the ITSSAI, 2006. The appellant also referred to Advance Ruling of Banglore Authority in case of M/s Karnataka Co-operative Milk Producers Federation Ltd.

¶15

6' The Gujarat Authority for Advance Ruling (herein after referred to as ,the GAAR',), vide Advance Ruling No. GUJ/GAAR/R/04/2021 dated 2o.ol.2o2l, inter-alia observed that as per explanatory notes of HSN 0402, the chapter does not cover beverages of milk flavored with cocoa or other substances; product in question merits classification under chapter Heading 22029930 which was also confirmed in Agenda of 3l't GST Council Meeting (Volume-2) dated 22.12.2018; case laws relied upon by appellant is not applicable to the facts of present case. The GAAR relied upon the judgement in case of M/s Ernakulam Reg.Co-op.Milk products Union Ltd V/s CCE, Kochi 12009 (236) ELT 329 (Tri-Bang)1, M/s Kaira Dist.Coop.Milk producers Union Ltd V/s Uol [2015 (320) ELT 408 (Guj.)] and on ruling of Tamilnadu Advance Authority in case of lws Britannia Industries Ltd 12020 (36) GSTL 5g2 (AAR-GST-T.N.)1, ruling of Andhra Pradesh Advance Authority in case of M/s Trumala Milk products pvt Ltd IELT 2020 (32) GSTL 558 (AAR-GST-A.P.)I and ruling of Andhra pradesh Advance Authoritv in case of IWs shri chakra Milk Products LLp IELT 2020 (32) GSTL 206 (AAR-GST-A.P.).

¶16

6.1 In view of the foregoing, the GAAR rured as folrows:-

¶17

"Ques. What would be the classification of ,Flavored Milk,? Ans:^'Flavoured Milk' is classifiable under Tariffltem 2202 gg 30 of ihe First schedule of the Customs TariffAct, 1975 as a^,beverage containing milk,.,,

¶18

7 Aggrieved by the aforesaid advance ruling, the appellant has filed appeal

¶19

¶20

7.1 The appellant in the ground of appeal^{has submittedthat the GAAR erred in} overlooking the fact that the product in^question was^{milk itself,and not a beverage} containing rnilk or a beverage based on milk.^{The term} 'milk'^{is defined under Note I to} Chapter 4 and according to statutory^definition of^{milk, flavored milk is rnilk and} correctly classifiable under Chapter 4 of tariff. Flavored milk^{is even otherwise dairy} produce which is most appropriately classifiable under chapter 4 which covers 'dairy produce' ancl therefore, classification of flavored milk under Chapter 22 is not correct which covers beverages other than milk as milk is specifically covered undcr Chapter^4. Further, Chapter Heading 22029030 covers 'beverages containing milk'^meansonly those beverages that contains milk and not milk as such.

¶21

7.2 The appellant submitted that the GAAR overlooked the difference^between flavored milk (which is almost l00oh milk) and^products like milkis,^{swcrveetc containa} small percentage of milk and hence they were in the nature of beverages containing milk. The appellant referred to case laws of lWs Food Specialties Ltd [199]⁽⁵¹⁾ ELT 310], IWs Dalmia Industries Ltd 11992 (61) ELT 295 (Tri)l and UOI V/s M/s Food Specialties Ltd [998 (97) ELT (SC)] wherein it was held that milk or milk^powder confirming^to PFA standards is covered under Chapter 4 of the tariff. The schemc, scope and coverage of Chapter 4 still remains the same and definition of 'milk'^has also^{been retainedeveh} under the GST Tariff and therefore flavored milk which adrnittedly^{standardizedmilk} (i.e. partly skimmed milk/ is classifiable under Chapter 4 only.

¶22

7.3 The appellant submitted that when GAAR in^para 9 of ruling^{recorded that product} in question consisted of standardized milk^(i.e. partially skimmed milk)^{92%o withou]} removal of fat with sugar, color and flavor being around 8oZ, they had no^jurisdiction tb still hold that flavored milk is beverage containing milk or beverage based^on milk.Therefore decision of GAAR is wholly illegal and liable to be^set aside.

¶23

7.4 The appellant submitted that GAAR bypassed the^judgement in cases of^Mehsana District Co-operative Milk Producers Union Ltd and IWs Food Speoialties Ltd on the basis that above^judgments pertained to the classification of skimrned milk/partially skimmed milk/fully skimmed milk and the^judgement were rendered under other act and could not be considered for deciding classification under GST Tariff which^{was clearly} erroneous finding as both Central Excise Tariff and GST Tarilf are based on HSN and comparison of Chapter 4 of both tariffs clearly shows that scope and^coverage of^th.e chapter is absolutely similar. The appellant also submitted that in^{above judgments,} classification of milk is decided and if skimmed milk/partially skirnmed milk/fully skimmed rnilk is classifiable under Chapter 4 even if they contains sugar or other sweetening matters as well as flavors, then the product in question is also classifiable under Chapter 4.

¶24

7.5 The appellant submitted that GAAR erred in holding that PFA Acts and Itules are not applicable to present case as the purpose of PFA was different as even Flon'ble Supreme Court considered that PFA standards for milk are relevant for classification of milk under Central Excise Tariff.

¶25

¶26

7 '6 The appellant submitted that GAAR erred in holding that product is a ready for consumption drink i.e. beverage with a basis of milk even after agreeing with the appellant's contention that the product in hand was milk.The products like milkis, swerve dtc can be considered as beverages with a basis of milk or beverages containing milk.

¶27

7.7 The appellant submitted that milk is defined under Note I of Chapter 4 as full iream or partially or completely skimmed milk and the product in question is admittedly standardized milk which is classifiable under Heading 0402. Flavored milk is specifically covered under Para A.l 1.01.05 of the Prevention of Food Adulteration Rules which is relevant lor classifying milk under Chapter 4 of tariff as held by Hon'ble Supreme Court. The appellant also submitted that Amul Kool/Amul Kool Cafd is known as milk in common parlance and the people selling, purchasing and consuming it identifles it as milk and not as beverages containing milk.

¶28

8 During the course of personal hearing held on 28.07.2022, the advocate for the appellant reiterated the submissions made in the appeal dated 07.04.2021. He further submittcd that the IJon'ble supreme court of India in the case of Union of India vs. Mohit Minerals Pvt. Ltd., vide its judgment dated 1g.05.2022 had observed rhat the GST Council's recommendations are not binding and those have only persuasive value. He added that they had relied upon the judgment of Hon'ble High Courr at Allahabad in the case of Gu-iarat Co-op. Milk Marketing Federation Ltd., Vs. State of Up wherein flavoured rnilk has been upheld as Milk however GAAR has not given any findings on the samc. He submitted that product sold by the appellant is milk and not a beverage.

¶29

FIND INGS :-

¶30

9' We have carefully gone through and considered the appeal and written submissions filed by the appellant, submissions made at the time of personal hearing, Advance Ruling given by the GAAR and other material available on record.

¶31

I0' The main issue here is to decide the classification of the product viz. Ilavored milk produced from standardization of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurization and homogenization and then mixing of sugar and various flavors and finally bottling.

¶32

I l. The appellant in its submission stated that, their product i.e. flavored milk is milk itself (consisting of 92o/o of milk and \oh of sugar, flavor etc.) not beverages containing milk and is classifiable under Chapter 0402 instead under Chapter 2202 as held by GAAR.

¶33

We flnd that the classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which in turn is based on Harmonized, System of Nomenclature, popularly known as 'HSN'. The rules of interpretation, section notes and chapter notes as specified under the Customs Tariff Act, lg75 are also applicable lor classification of Goods under GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable

¶34

¶35

would be arrived at on the basis of notifications^{issuedunder GST by respective} Govemments.

¶36

The appellant clairned that flavored^{milk is classifiable under Chapter Heading} 0402 of Customs Tariff Act,^I 975^{whichis elaboratedbelow:}

¶37

CHAPTER 04

¶38

0402	MILKANDCREAM,CONCENTRATEDOR CONTAINING ADDEDSUGAR OROTHER SWEETENINGMATTER
040210	lnpowder,granules orothersolidforms,^{of a fatcontent, byweight} not exceeding¹.5%o:
04021010	SkimmedMilk
04021020	Milk foodforbabies
04021090	Other -ln powder,granules orothersolidforms,ofafatcontent,^by weightexceeding¹.5%:
0402 21 00	Notcontainingadded sugar or other^{sweetening mafter}
0402 29	Other:
0402 2910	Whole Milk
0402 29 20	Milk forbabies
0402 29 90	Other Other:
040291	Notcontainingadded sugar or other^{sweeteningmatter:}
04029110	Condensedmilk
0402 91 90	Other
040299	Other:
04029910	Wholemilk
0402 99 20	Condensed milk
0402 99 90	Other

¶39

The Chapter Note I to Chapter 4 olthe^{CustomsTariff Act, 1975 reads as under:}

¶40

The expression "mitk" means full^{cream milk or parlially or completely} skimmed milk.

¶41

The relevant explanatory note of^{Customs Tariff Heading 0402 as per HSN is given} belorl':

¶42

This heading covers milk⁽ as defined^{in Note 1 to this Chapter) and cream,} concentrated (for exampte, evaporated) or^{containingadded sugaror other} sweetening matter, whether^{liquid,paste or solid (in blocks,powder of granules)} and whether or not^preserued or^{reconstituted.}

¶43

Milk powder may contain smalt^{quantitiesof starch (not exceeding 5% by} weight) added, in^pafticular, to maintain^{the reconstituted milk in its normal} physical state.

¶44

The Heading does not cover:

¶45

(a) Curdled, fermented or acidified milk or cream^(heading 04.03).

OR
Pa
5

or other

(b) Beverages consisting of milk flavoured with cocoa subsfanc es (headi ng 22.02).

¶50

Sub-heading Explanatory Note:

¶51

Sub-Headings 0402.10, 0402.21 and 0402.29:

¶52

Ihese sub-headings do not cover concentrated mitk or cream in the form of paste (sub-headings 0402.91 and 0402.99).

¶53

l3'l From the explanatory notes, which is reasonable guide to understand the scope of the entries, it is seen that above heading covers milk as defined in Note I to this chapter and means full cream milk or partially/completely skimmed milk. Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 201I (FSSAI) defines full cream milk, skimmed milk, standardized milk and toned milk as under:

¶54

l'2'6 Full Cream Milk means milk or a combination of buffalo or cow milk or a product prepared by combination of both that has been standardised to fat ancl solid.s-nor-fat percentage, given in the table below in 2.1.1;1, by adjustment/addition of mitk solids, Full cream Milk shall be pasteurised. It shall show a negative phosphatase test. tt shall be packed in clean, sound and sanitary containers properly sealed so as to prevent conlaminalion.

¶55

1'2' 19' SKIMMED MILK means the product prepared from milk Jiom which almost all the milk./ht hqs been removed mechanicolly.

¶56

l'2'21 STANDARDISED MILK means cow mtlk or buffalo milk or sheep milk or goat milk or a combination of any of these milk that has been standardised to fat and solidsnot-.fat percentage given in the table below in 2.1. t ; l by lhe acl.iu.stmenl of mitk solids. Standordised milk shall be pasteurised and shall show q ne gat ive Irhosphatase Test.

¶57

l '2'24 TONED MILK meons lhe product prepared by admixrure of cow or buffalo milk or ' both with fresh .skimmed milk; or by odmixture of cow or buf.falo milk or both that has been snndardised to fot and sorids-not-fat percentage given in the trtble below in 2.1.1;l by adjustment of milk solids. It shall be pasteurised ond 'shall show a negative Phosphatase Test. When fat or dry non-fat-milk solids are u.sed, it shall be ensured that the producr remains homogeneous and no deposition of solids takes place on standing.

¶58

In the present case, as per the product labels subrnitted by appellant, the Milk constituent is'standardized Milk'or'Toned Milk'which are not .Full Crearn Milk, or 'Skimmed Milk' as per above definitions and Chapter Note I explaining the scope of Heading 0402 and therefore are undoubtedly .*.lrd.d from the purview of Tariff Heading 0402. Therefore, irrespective of the- contentions that the product remains a 'Milk' even with added flavours, it is clearly established that the 'Milk, referred to in this Tarifr hcading and the products of the appellant are not the same and on this ground alone the products in hand are not covered under Customs Tariff Heading 0402.

¶59

13.2 Furthermore, the relevant exp ,lanatory notes of CTH 0402 of the HSN clearly state that bevcrages consisting of milk fla voured with cocoa or other substances is specifically excluded frorn this chapter heading.

¶60

HOR

¶61

¶62

The GAAR held that flavored milk is classifiable under CTH 2202 99 30. The relevant chapter notes, tariff entry and HSN Explanatory note is^given below:

¶63

CHAPTER 22

¶64

Beverages, spirits and vinegar

¶65

2202 WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NONALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2OO9 2202 10 90 Other Other: 2202 91 00 Non-alcoholic beer 2202 99 Other: 2202 99 10 Soya milk drinks, whether or not sweetened or flavoured 2202 99 20 Fruit pulp or fruit^juice based drink 2202 99 30 Beverage containing milk 2202 99 90 Other

¶66

The explanatory notes as per HSN is as below:

¶67

(A)...

¶68

(B) Other non-alcoholic beverages, not including fruit or vegetable iuices of heading 2009

¶69

This group includes, inter alia:

¶70

(1) Tamarind nectar rendered ready for consumption as a beverage by the addition of water and sugar and straining.

¶71

(2) Certain other beverages ready for consumption, such as those with a basis of milk and cocoa.

¶72

A perusal of the above tariff entries, and explanatory notes^{ol'1heHSN,indicates} that beverages with a basis of milk and cocoa^{whichare ready for consumptionis covered} under tariff item 2209 99 30 as beverage containing^{milk. Furthermore,on conjoint} reading ofChapter heading 0402 and 2202^and relevant explanatory^{notes, it is clearthat} milk flavoured with cocoa or other substances are specifically^{excludedlrom Chapter} heading 0402 and included under Chapter heading2202.

¶73

The Customs Tariff adopted for the^{purposes of GSTis alignedto IISNand thc} arrangement of the products in the Tariff has been done^{in a schematic tnanner. Thc} initial Sections/Chapters contain live animals, not^{processed goods and the later Chapters} contain the processed goods. i.e., Section I covers 'Live Animals^{and AnimalProduce' in} which Chapter 4 covers 'Dairy produce; birds' eggs; natural honey; edible^{products of} animal origin, not elsewhere specified or included'^{and Section} lV^{covers 'Prepared} Foodstuffs, Beverages, Spirits And Vinegar, Tobacco And^{ManufacturcdTobacco} Substitutes' in which Chapter 22 covers^{'Beverages,spiritsand vinegar'.Fromthe} classification scheme adoptcd in the Tariff, it can be seen^{that products in theirnatural} state are classified in the initial chapters and when such^{productsundergoes certain} process, thcy are classified in the later chapters. In the^p resent case, flavoured mi

CO5I

the natural form of milk but obtained after application of specific processes on the milk, as explained in Para 10.

¶79

16.^{The appellant} submitted that GAAR erroneously classified flavoured milk under Chapter 22 which basically covers beverages other than milk, as milk is specifically covered under Chapter 4 of the tariff. This interpretation of appellant is not correct as 'beverages containing milk' are specifically covered under tariff item 2209 99 30 of Chapter 22.

¶80

The appellant submitted that GAAR erred in ignoring the judgments in cases of Mehsana District Cooperative Milk Producers Union Ltd and M/s Food Specialities Ltd on the basis that such judgments were with regard to classification of fully/partially skimmed milk/milk powder and that the judgments rendered under other act could not be considered for deciding classification under GST Tariff. The said contention of the appellant is not valid and legal. With regard to the judgment in case of Mehsana District Cooperativc Milk Producers Union Ltd l2OO4 (167) ELT 456 (Tri.-Del.)1, we find that this case was with regard to classification of skimmed milk powder under heading 0401 . 1 3 and with regard to judgment of Hon'ble Punjab & Haryana High Court in case of M/s Food Specialities Ltd [991 (51) ELT 310 (P&H)], we find that this judgment is not applicable to present case as the issue to decide was the nature of skimmed milk or partially/full skimmed milk whereas in the present case the issue is to decide the classification of beverage containing milk.

¶81

Irurther the appellant in support of their contentions has relied upon the following .judgmcnts:

¶82

i) Dalmia Industries Ltd. U992(61) ELT 295 (Tribunal)l

¶83

ii) uot vs. Food Speciatities Ltd. [1998 (97)ELT 402 (sc)]

¶84

iii) Guiarat co-op. Milk Marketing Federation Ltd,. [2017 (5) GSTL 351]

¶85

We flnd the above case laws are not applicable to the present case of the appellant for the reasons enumerated below:

¶86

In thc case of Dalmia Industries Ltd., the Tribunal held that, Partially skimmed milk powder and skimmed milk powder are different products inasmuch 4s, the expression skimmed milk powder means completely skimmed milk powder. The product is essentially partially skimmed milk which was sweetened and to which certain additives like vitarnins, minerals were added. The product is thus classifiable under sub-heading 0401.19. The said decision of Tribunal was overruled by Larger Bench of Tribunal in the case of Abbott India Ltd Vs. CCE, Goa [2009 (236) ELT 663 (Tri.-LB)]. The case does not have any relevance to the present case as the product involved and facts of the case are diff'erent.

¶87

In the case of UOI Vs. Food Specialities Ltd., the I-Ion'ble Supreme Court of India while dismissing the appeal filed by the department held that "The submission of the learned Additional Solicitor General is that the expression 'skimmed milk, also includes^'partially skirnmed milk' and for this reason the product should be classified under l-leading 0401.13. In the impugned judgment the view taken is that'partially

¶88

¶89

¶90

skimrned milk powder' is a separate^{marketablecommodity from 'skirnmed milk} powder' and, therefore, it has to be classified under the Heading 040^{I .} l9 and^not 040^{I .} l3 as clairned by the Revenue. In the impugned^judgment, detailed^{reasons are givenflor} rejecting the Revenue's contentions. Apart from referring to the^{fact that partially or} completely skimmed rnilk are mentioned as separate^{products in the main headingitself,} it has been pointed out with reference to ISI specification^{as well as Preventionof F'ood} Adulteration Rules and the International Standard^{that 'partiallyskimmed milk powder'} is different from^'skimmed rnilk^powder' and^{is so recognisedtherein. Nothing is shown} to us against this material to suggest that a different view^{is preferable for any reason.} There is, thus, no ground to interfere in the appeals."^{The casedoes not haveany} relevance to the^present case as the^{productand facts ofthe case are different.}

¶91

In the case of Gujarat Co-op. Milk Marketing^{FederationLtd., the IJon'ble High} Court at Allahabad had^{given decisionin a VAT case interpreting the scope of exemption} benefit given to Milk and Milk^{products under VAT laws applicable in the State of UP.} The same is not relevant in the^present case which^{is based on CustomsTarilf aligned} with FISN adopted for classification under^GST.

¶92

The appellant submitted that their^{product i.e. flavoured milk is milk itself and} GAAR erred in classiffing it as^{beverage with a basis of milk or beverage containing} milk as milkis, swerve, vio etc^{(which,apartfrom milk constitutefiltered/carbonated} water, citric acid, sugar, flavour, corn syrup,^{phosphoricacid etc.) can bc considered} beverages. In this connection, we find that^{the National DairyDevelopment Boardas} seen on their web^page servi holds 'Flavoured Milk'as a Diary based^{Beverage. f'he same is given as under:}

¶93

Dairy based Beverages

¶94

MILK BEVERAGE WITH RAGI

¶95

A preparation of ragi^(finger millet) in milk^is a^{refreshing andsatiating drink for older} infants, growing kids and adults. NDDB has^developed a^{simpletechnology for} manufacturing milk beverage with ragi for^{commercialproduction at the dairyplants.} The pasteurised variant of^product can be^{padked'using pouch filling machine used for} milk. The sterilised variant has a shelf life of 45 days^{at ambient temperature.}

¶96

WHEY-BASED DRINK

¶97

Liquid obtained during production of shrikhand,^{paneer,chhana and cheese is called} whey. Whey contains 5.5-7.0^percent total^{solids consisting of lactose, milkprotein,} minerals and water-soluble vitamins. In^{India, at present,mostof the whey is usually} drained off causing^great loss of^{valuable nutrientsand addingto the problemof} environmental pollution.

¶98

Two variants of refreshing whey-based^{beverages which can be useful to dairies} generating whey:

¶99

. Maskq whey beverage: This product has been developed using combination of shrikhand (maska) whey, mango^pulp and other additives.

¶100

. Whey-based beverage with spices: It has been developed using combination of CheeselPaneer whey and Indian spices. Manufacturing process for lactose^hydrol variant is also available.

¶101

¶102

¶103

Manulacturing of whey beverages at a dairy plant requires pasteurisation and packaging lacilities only. It can also be manufactured using the existing infrastructure for lassi/chhach, where available. The pasteurised product has a shelf life of l0 days at goC or below when packed in polyfilm.

¶104

FLAVOURED MILK

¶105

Flavoured milk has sugar, flavouring and colouring added to make it tastier to consume. It is generally manufactured by in-bottle sterilisation or Ultra High Temperature (UHT) processing with aseptic packaging.

¶106

For larger volumes, some capital investment for specific equipment such as automatic bottle-filler-cum-sealer and rotary bottle steriliser or aseptic piocessing and packaging unit nray be required. If a dairy plant has infrastructure for UHT milk processing, the same can also be used for flavoured milk. The product does not contain uny idd.d preservative and has a shelf life of 6 months when sterilised in glass bottles or UHT processed and aseptically packed.

¶107

NDDB being a nodal agency in the Dairy products and the 'Flavoured Milk, is categorized as Beverage as can be seen above. Further, Beverage as per the Oxford dictionary dcfinition is 'any type of drink except water'. Thus, it becomes evident that the product in hand is a Beverage.

¶108

We lind that in similar facts of case the Appellate Authority for Advance Ruling , Tamil Nadu. vide its Order in Appeal No.AAAR/16/2021 (AR) dated 30.06.202I in the case of M/s. Britannia Industries Ltd., held that flavoured milk is not classifiable under Tariff Fleading 040210404 but classifiable under crH2202 99 30.

¶109

In vicw o1'the foregoing, we reject the appeal filed by appellant M/s. Gujarat Cooperative Milk Marketing Federation Ltd and uphold the Advance Ruling No. G UJ/GAA PUIU 0 4 I 202 1 dated .01.2021 of the Gujarat Authority lbr Advance Ruling.

¶110

l' (Mili nd Torawane) Mernber(SGST)

¶111

\t (Vivek Jan ) Mem (cGSl')

¶112

Placc: Ahmcdabad Datc:{{.08.2022.

¶113

Page l0 of 10

M/s Gujarat Co-operative Milk Marketing Federation Ltd.

Case brief

What is this about?

What did the court decide?

M/s Gujarat Co-operative Milk Marketing Federation Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases