Dry powder containing protein powder is not a medicament, to be classified under heading 2106: AAAR

Case Details: Appellate Authority for Advance Ruling, Uttarakhand Windlas Biotec Ltd., In re - [2022] 139 taxmann.com 359 (AAAR-UTTARAKHAND)

Judiciary and Counsel Details

• • P.K. Goel & Dr. Ahmed Iqbal, Member
  • Brajesh Gupta, FCA, LLB Adv. for the Applicant.

Facts of the Case

The appellant ventured for manufacture of Dry Powders containing protein powder with vitamins and minerals and it obtained drug license and approval from concerned authorities. It filed an application for advance ruling to determine classification and taxability of product manufactured by it. The Authority for Advance Ruling held that the product manufactured by it would be treated as food supplement and shall be classified under heading 2106. It filed appeal against the order.

AAAR Held

The Appellate Authority for Advance Ruling observed that the product described in label as for prophylactic use but disease or ailment cured or prevented by such product were not mentioned. The impugned product can’t be classified as medicament merely because it would be manufactured under Drug License. The license issued by the Drug Controller may be used as a guide for classification of the product but it can’t be a determining factor. Therefore, the impugned product being in the nature of protein concentrate and manufactured under FSSAI license would be classifiable under heading 2106 and taxable at 18% under GST.