2004 (2) TMI 132 - AT - Central Excise

Classification of skimmed milk powder u/s 0401.19 or 0401.13 of the Central Excise Tariff Act - Dairy product - Milk powder - HELD THAT - Learned SDR has rightly pointed out that the issue involved in Food Specialities case 1990 (3) TMI 83 - HIGH COURT OF PUNJAB AND HARYANA was whether partly skimmed milk powder was classifiable under sub-heading 0401.13 only. The Hon'ble Punjab Haryana High Court held that partly skimmed powder was not covered by that sub-heading because at the relevant time, sub-heading 0401.13 only covered 'skimmed milk powder' and not 'milk powder' which is not the case in the present matter. Similar was the decision of the Tribunal in the case of Dalmia Industries Ltd 1992 (2) TMI 216 - CEGAT, NEW DELHI . We, therefore, hold that the skimmed milk powder manufactured by the appellants is classifiable under sub-heading 0401.13 of the Central Excise Tariff. Accordingly, the appeal is rejected.

Summary

Issues involved: Classification of skimmed milk powder u/s 0401.19 or 0401.13 of the Central Excise Tariff Act.

Summary:
The appeal involved a dispute regarding the classification of skimmed milk powder produced by a Co-operative Society under sub-heading 0401.19 as claimed by them or under sub-heading 0401.13 as confirmed by the Commissioner (Appeals). The appellant argued based on previous court decisions that skimmed milk powder is a separate commodity from milk powder and should be classified differently. The Revenue contended that the current sub-heading 0401.13 covers all types of milk powder, including skimmed milk powder.

Upon considering the submissions, the Tribunal found that sub-heading 0401.13 of the Tariff refers to milk powder without specifying any adjective, thus encompassing all types of milk powder - whole, skimmed, and partially skimmed. The Tribunal referred to Indian Standard Specification for milk powder, which categorizes milk powder into whole, partly skimmed, and skimmed milk powder. It was concluded that when the Tariff mentions "milk powder" without distinction, it includes all varieties of milk powder. The decision was supported by international standards specifying different fat contents for whole, partly skimmed, and skimmed milk powder, confirming them as distinct products. The Tribunal held that skimmed milk powder falls under sub-heading 0401.13 and dismissed the appeal based on the classification under the Central Excise Tariff Act.