Flavored Milk Classified Under Tariff Heading 0402 9990 for Lower GST Rate
Issue: The correct GST tariff classification for flavored milk: whether it falls under Heading No. 2202 9930 (attracting 6% CGST and 6% SGST) or Heading No. 0402 9990 (attracting 2.5% CGST and 2.5% SGST).
Facts:
- The revenue authorities contended that flavored milk should be classified under Heading No. 2202 9930, which has a higher GST rate.
- The assessee argued that flavored milk should be classified under Heading No. 0402 9990, which has a lower GST rate.
Decision:
- The court relied on a previous decision in W.P.No.254 of 2024, dated December 10, 2024, which addressed the same issue.
- Following the precedent, the court held that flavored milk should be classified under Heading No. 0402 9990, attracting a lower GST rate of 2.5% for CGST and 2.5% for SGST.
Key Takeaways:
- This case clarifies the GST tariff classification for flavored milk, confirming that it falls under Heading No. 0402 9990.
- The decision provides certainty for businesses involved in the production and sale of flavored milk regarding the applicable GST rate.
- The reliance on the precedent in W.P.No.254 of 2024 ensures consistency in the classification of flavored milk for GST purposes.
HIGH COURT OF ANDHRA PRADESH
Heritage Foods Ltd.
v.
Additional Commissioner and Others
R. Raghunandan Rao and MAHESWARA RAO KUNCHEAM, JJ.
WRIT PETITION NOs: 27108, 21998 & 22055 of 2021
JANUARY 29, 2025
Vimal Varma Vasi Reddy for the Petitioner. Harinath N., (Asst. Solicitor General) for the Respondent.
ORDER
R. Raghunandan Rao, J.- The issue raised in these three Writ Petitions relate to the question of flvaoured milk. It is the contention of Revenue that flavoured 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 flavoured 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 flavoured 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.