Fact: M/s. Italian Edibles Private Limited is engaged in the manufacture, supply and export of confectionary and dairy/ sweet product. The applicant manufactures various product including flavoured wafers, Milk chocolates, Milk compound chocolates and other dairy / sweet products. Further, the applicant is also engaged in the manufacture of an edible product under the brand name “Militry Malai Mithai”, which is, as per Applicant, identically known as “Rabdi’, and recognised as a ‘Mithai’ or ‘Misthan’ by the common parlance. It contains the following ingredients, Sugar, Vegetable Fats, Skimmed Milk Powder, Whey Powder, Emulsifiers and Flavours.
Issue Involved: Whether the product having brand name “Militry Malai Mithai”, manufactured and supplied by the applicant containing the ingredients Sugar, Vegetable Fat, Skimmed Milk Powder, Whey Powder, Emulsifier and other permitted Flavours , 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 or under the Tariff Heading 1704 as a Sugar confectionery.?
Applicant’s Interpretation of Law: The Applicant have submitted that as per their view the aforementioned product should be treated as ‘sweet meat’, classifiable under tariff Heading No.21069099.
Held: The Hon’ble AAR of Madhya Pradesh vide Advance Ruling Order No. 13/2018, No. 09/2018/AAR/R-28/41 dated September 18, 2018 stated that ‘Militry 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’. Therefore, ‘Militry Malai Mithai’ as described in the Application will merit classification under Chapter Heading 2106 90 of the GST Tariff as ‘Sweetmeat’ and shall be entitled to benefit of Notification No.01/2017-Central Tax (Rate) dated June 28, 2017 and corresponding notification under MPGST Act,2017 at present attracting GST @5% Adv. [(2.5% CGST + 2.5% SGST) or 5% IGST as the case may be] as envisaged under Serial Number 101 Schedule I to the said Notification.
Citation: http://insta.instavat.in/PDF/MP_ADVANCE-RULING-Italian-Edibeles.pdf