Union of India Vs Heritage Foods Limited
Date: July 16, 2025
Subject Matter
Flavored Milk classifiable under HSN '0402 9990' attracting 5% GST. HC ruling upheld.
Summary
The Supreme Court of India has dismissed a Special Leave Petition (SLP) filed by the Union of India, thereby upholding the existing 5% GST rate on flavoured milk. The Union of India had argued for a 12% GST rate. However, the Writ Court had previously classified flavoured milk under Item '0403 00 00', which attracts a 5% tax. The Supreme Court's decision was consistent with its previous dismissal of a similar petition (SLP(C)(D) No. 17602 of 2025) on May 9, 2025. This ruling reinforces the lower court's decision on the classification of the product.
The Supreme Court dismissed the petitions, affirming the classification of flavoured milk under Item '0403 00 00' and the corresponding 5% GST rate. It found no reason to interfere with the Writ Court's decision, especially given the precedent set by its own prior dismissal of a similar case.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. The delay of 30 days in filing the present petitions is condoned in the facts and circumstances of the case. Accordingly, I.A. No. 157639/2025 is allowed.
2. The issue in these petitions is whether flavoured milk has to be classified as Item 403 taxable at the rate of 5% or as Item 9930 taxable at the rate of 12%. This issue has already been decided by this Court.
3. The Writ Court has held that it has to be classified as Item 04030000 and has to be taxed at the rate of 5%.
4. The special leave petition against one such decision bearing SLP(C)(D) No. 17602 of 2025 has already been dismissed by this Court vide order dated 09.05.2025.
5. In view of the above, the present petitions also stand dismissed.
6. Pending application(s), if any, shall stand disposed of.