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PJ/Case Law/2020-2021/3583

Whether protein powder with vitamins and minerals is classified under chapter 3004 or 2106 ?
NEWTRAMAX HEALTHCARE 2020(32) G.S.T.L 578(A.A.R.-GST-H.P) dated 15.11.2019
Brief facts:The applicant is engaged in manufacturer and supply of pharmaceutical formulations. He has obtained loan licence to manufacture for sale or distribution of drugs specified in Schedule C and Schedule C1 of the Drugs and Cosmetics Act, 1940.
Issue:Whether protein powder with vitamins and minerals is classified under chapter 3004 or 2106 ?
Applicant’s contention:  The applicant has produced total 25 items approved by the drug licensing authority included Protein Powder with Vitamins and Minerals as mentioned  at Serial No. 20 and 21. The Serial No. 20 and 21 ( Protein Powder with Vitamins and Minerals ) are mentioned at Serial No. 138 of the Fixed Dose Category under Schedule C of the Drugs and Cosmetics Act. The said product is covered “Medicaments” according to above Act.  But the applicant has so far been classifying the goods under HSN 2106 of GST Act.  The description of the goods under the HS Codes 3004 is “Medicaments (excluding goods or Heading 3002,3005 or 3006) consisting of mixed or unmixed product for therapeutic or prophylactic uses……”.
He has contended that the other manufacturers under similar conditions i.e. with a valid drug license and with necessary approvals from the appropriate drug authorities are classifying the goods under HSN 3004.
Respondent’s reasoning and Judgment:The advance ruling are of the considered opinion that all the goods being manufactured by the applicant which are mentioned (including the goods mentioned at Sr. No. 20 and 21) in the drug license issued to the applicant by the competent authority and have the labels as per the standards prescribed under the Drugs and Cosmetics Act, 1940 can be classified under HS code 3004.
Prepared by: Vijay
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