Classification of goods— The Appellant is inter alia engaged in the distribution of various dairy and non-dairy products and are registered in GST. 

The goods "Cooking Cream" sold by the appellant under the name 'Cooking Delite' is a proprietary food consisting of Water, Edible Vegetable Fat (hydrogenated palm kernel oil), Milk Solid, Sugar along with premixes of emulsifiers and stabilizers. It is ideal for use in truffles, soups, sauces, gravies and all types of cuisines.

The question for determination in this appeal is whether the product "cooking cream" manufactured/ supplied by the appellant merit classification under Heading 1517 as claimed by the appellant or classifiable under Heading 2106 as determined by the Authority for Advance Ruling, Haryana.

In the instant case, the impugned item is mixture of vegetable oil and other food stuffs. After the manufacturing process, as detailed in the appeal, it is observed that individual identity of all the mixtures is lost and what, emerges is totally a different item, a new product having different name, character and use. Thus, cooking cream cannot be said to be merely a mixture of vegetable oil with other ingredient, but a totally new product having different name character and use. Under such circumstances, it does not merit classification under chapter heading 1517, rather merits classification under chapter heading 21069099, as "preparations not elsewhere specified or included" as it does not remain fraction of palm oil.

Held that— The impugned item merits classification under chapter heading 2106 of the schedule to the Customs Tariff Act, 1975 and chargeable to GST accordingly.