Classifiation of goods— The present appeal has been filed against the Advance Ruling. The appellant has sought Advance Ruling on the following question

“What would be the classification of ‘Flavoured Milk’?”

The advance ruling authority ruled that ‘Flavoured Milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule of the Customs Tariff Act, 1975 as a ‘beverage containing milk’.”

The main issue here is to decide the classification of the product viz. flavored 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.

The appellant submitted that their product i.e. flavoured milk is milk itself and GAAR erred in classifying it as beverage with a basis of milk or beverage containing milk as milkis, swerve, vio etc (which, apart from milk constitute filtered/carbonated water, citric acid, sugar, flavour, corn syrup, phosphoric acid etc.) can be considered beverages.

Held that— We reject the appeal filed by appellant and uphold the Advance Ruling order passed by Gujarat Authority for Advance Ruling.