Key Pointers –

• The Applicant, Madurai Famous Jigarthanda LLP, are manufacturing dairy products in the name of “Jigarthanda” packed in unit container and also in loose form/ in bottles without sealing of packet/in loose carry bags and bearing details like name of manufacturer or branches or others
• The issue involved here is whether the product manufactured by the applicant as pasteurized milk and milk cream named as `Jigarthanda' is classifiable as “Goods” and whether it is taxable or not?
• The AAR held that Jigarthanda manufactured by using various ingredients or inputs is in the form of semi-solid form, as stated by the applicant, satisfies the definition of “goods”. 
• 'Milk and Cream' referred to in HSN 0402 and Jigarthanda manufactured by the applicant are not the same and, on this ground, alone the product Jigarthanda is not covered under HSN 0402. 
• On conjoint reading of Chapter heading 0402 and 2202 and relevant explanatory notes, it is clear that milk flavoured with cocoa or other substances are specifically excluded from Chapter heading 0402 and included under Chapter heading 2202.
• Therefore, it is a taxable goods covered under Notification No.1/2017 CTR dated 28.06.2017 vide serial No.50 of Schedule II as “Beverages containing milk” attracting CGST of 6% and attracting SGST of 6% vide serial No.50 of Schedule II of G.O. (Ms.) No. 62 dated 29.06.2077 for intra state supply.