The Authority for Advance Ruling (AAR), Madhya Pradesh ruled that Anna Malai Mithai is “sweetmeat” under 2106 90 of GST Tariff.
The Applicant, M/s Anand Products is engaged in the manufacture and supply of confectionary and dairy/sweet products. The applicant primarily manufactures dairy/sweet products and confectionery items like milk chocolates, milk compound chocolates, candies and lollypops. One of the products that the applicant manufactures and sells the same under the brand name “Anna Malai Mithai”.
The question under consideration was 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.
Krishan Garg and Shri Mrinal Garg, Chartered Accountant/ Authorized Representative of the applicant appeared for personal hearing on behalf of the applicant and reiterated the submissions made in the application and also submitted a written submission. The Applicant submitted that the impugned product “Anna Malai Mithai”, should be treated as `sweet meat’. classifiable under Tariff I leading No. 2106 90 99.
The Bench consisting of Virendra Kumar Jain, Additional Commissioner and Manoj Kumar Choubcy, Joint Commissioner observed that “Chapter Note 6 to the said chapter clearly mentions that —”Tariff item 2106 90 99 includes sweet meats commonly known as “Misthans” or “Mithai” or called by any other name”. They also include products commonly known as “Namkeens”, “mixtures”, “Bhujia”, “Chabena” or called by any other name. Such products remain classified in these sub-headings irrespective of the nature of their ingredients.” It is telling that the said chapter note clearly includes sweet meats which states that these sweet meats commonly known as “Mithai” shall be classified in tariff item 2106 90 99.
The Tribunal finally held that “we further hold that the impugned goods shall be aptly classifiable under Chapter Head 2106 90 99 as ‘Sweetmeats’.”
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