Heritage Foods Limited Vs Additional Commissioner
Date: January 28, 2025
Court: High Court
Bench: Andhra Pradesh
Type: Writ Petition
Subject Matter
Flavored Milk classifiable under HSN '0402 9990' attracting 5% GST
Summary
The Andhra Pradesh High Court dealt with three writ petitions concerning the proper GST classification of flavored milk. The dispute was whether flavored milk should fall under GST Tariff Heading No. 2202 9930, which would incur a total GST rate of 12% (6% CGST and 6% SGST), as asserted by the Revenue, or under Tariff Heading No. 0402 9990, leading to a lower total GST rate of 5% (2.5% CGST and 2.5% SGST), as claimed by Heritage Foods Limited and other petitioners. The court cited a prior ruling from December 10, 2024, indicating that flavored milk should be classified under the lower tariff heading. Following this precedent, the High Court affirmed that flavored milk falls under Tariff Heading No. 0402 9990 and granted petitioners who had paid the higher tax classification the right to apply for a refund of the excess tax paid. The court concluded by addressing any pending miscellaneous applications in connection with these writ petitions, stating they would be closed as a result of their ruling.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The issue raised in these three Writ Petitions relate to the question of flavored milk. It is the contention of Revenue that flavored milk would fall under GST Tariff Heading No.2202 9930 attracting tax at the rate of 6% CGST and 6% SGST. The case of the petitioner is that flavored milk would fall under Tariff Heading No.0402 9990 attracting tax at the rate of 2.5% for CGST and 2.5% for SGST.
2. This Court, by an order dated 10.12.2024, in W.P.No.254 of 2024 had held that flavored milk would have to be classified under Tariff Heading No.0402 9990 attracting tax at the rate of 2.5% for CGST and SGST Respectively.
3. Following the same, these Writ Petitions are disposed of in terms of the order, dated 10.12.2024, in W.P.No.254 of 2024. It is further submitted that in W.P.No.27108 of 2021, the tax demanded under the impugned assessment order was deposited. In view of the present order, it would be open to the petitioner to apply for refund of tax. Similarly, the other petitioners would also be entitled to apply for refund of tax, if any paid, till date.
As a sequel, pending miscellaneous applications, if any, shall stand closed .