Circular No. 7/88 Dated 24-2-1988

Central Excise - Classification of Shrikhand and Peda - Regarding.- A doubt has been expressed regarding classification of ‘Shrikhand’ and ‘peda’. This matter was discussed in the Conference of Collectors of West Zone held in Dec., 1987 at Baroda. The Conference was of the view that as no flour is added in the manufacture of these products, they would not merit classification under Chapter 19 but they, being made wholly from milk with sugar and flavour added, would be classifiable as other dairy products under heading 04.04 of Central Excise Tariff.

2. Shrikhand is prepared out of muska obtained from curd and by adding sugar and flavour only. Peda is prepared from khoa by adding sugar and flavour only. No flour is used while preparing either Shrikhand or Peda.

3. According to Note 4 of Chapter 4 of the Central Excise Tariff, heading 04.04 applies inter alia to products consisting of natural milk constituents whether or not containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa. The headings 04.01, 04.02 and 04.03 cover only milk and cream, butter and cheese respectively and all other dairy products are covered under heading 04.04.

4. In the instant case of Shrikhand or Peda, the natural milk constituent is muska or khoa respectively. The other ingredients are sugar and flavouring matter only. In view of the above, peda and Shrikhand are correctly classifiable under heading 04.04 of the Central Excise Tariff.

5. Trade interests may be suitably informed.

[F. No. 10/10/87-CX.1]