Classification of goods— The present appeal has been filed against the Advance Ruling issued by Authority for Advance Ruling, Andhra Pradesh.

It is observed that the main issue of contention is nothing but the classification and the relevant HSN code of the commodity i.e., flavoured milk.

The appellant claims that flavoured milk, akin to normal milk undergoes the same procedures of filtration, pasteurization and homogenization and contends the decision of AAR by arguing that it has the same nutritional value as normal milk even after adding sweetener and flavours to it and does not change its basic characteristic of milk.

This authority agree with the contention of the appellant that there is a difference between ‘Agenda’ and ‘Minutes’ of the Meeting in the business parlance and at the same time, drawing a parallel between the rounds of discussion being held by the GST Council and its procedures in this context is a bit far- fetched in the opinion of this authority. 

The appellant finally contends that the pre-dominant constituent of the product is milk and hence the “flavoured milk” does not merit classification under beverage containing milk, under tariff heading 2202 9930, but merits classification as milk, under tariff heading 0402.

Held that— The commodity ‘flavoured milk’ merits classification under beverage containing milk under tariff heading 2202 90 30. The rate of tax applicable for the said tariff item is 12% GST under entry no. 50 of Schedule II of Notification No.1/2017 – Central (Rate) dated 28.06.2017 as amended.  The Ruling of the AAR is in tune with legal position and it needs no interference and the appeal is accordingly dismissed.