Classification of goods— In the instant case, the applicant is engaged in the manufacture and supply of confectionery and dairy/sweet products. The applicant primarily manufactures dairy/sweet products and confectionery items like milk chocolates, milk compound chocolates, candies and lollypops.

The applicant manufactures and sells the same under the brand name “Anna Malai Mithai”. As per the applicant, it is “Rabdi” recognized as a ‘Mithai’ or ‘Misthan’ in the common parlance.

QUESTION RAISED BEFORE THE AUTHORITY -

Whether the product “Anna Malai Mithai’’, manufactured and supplied by the applicant containing the ingredients Sugar, Vegetable Fat, Skimmed Milk Powder, Whey Powder, Emulsifier and other permitted Flavor’s, which is identical to the commonly known Indian sweet “Rabdi”, should be classified under the Tariff Heading 2106 as Sweet Meats or under Tariff Heading 0404 as other dairy product consisting of natural milk constituents ?

The product in question i.e., ‘Anna Malai Mithai’ is a product made out of Skimmed Milk Powder, Sugar & Whey Powder as main ingredients with Emulsifiers etc. put up in small sachet/pouch in semi-liquid (paste) consistency, ready for consumption. 

The product cannot be termed as Dairy Product or Sugar Confectionery. However, there is no doubt that being edible preparation, manufactured under due license issued by concerned Government authorities, it would merit classification under Chapter 21 i.e., ‘Miscellaneous Edible Products’. 

Once the chapter is decided, a careful examination of different entries under Chapter 21, the quest for appropriate classification rests finally at 2106 90 99, the residual entry, as the product itself does not find specific place anywhere else in the Chapter 21. We thus conclude that the impugned product viz. ‘Anna Malai Mithai’ would merit classification as Miscellaneous Edible Product under Chapter Heading 2106 90 99, as ‘Sweetmeat’ and chargeable to GST as applicable. 

Held that—  This authority is of opinion that the impugned product “Anna Malai Mithai” as described in the Application will merit classification under Chapter Heading 2106 90 of the GST Tariff as ‘Sweetmeat’