Vijaya Visakha Milk Producers Company Ltd. Vs ACIT and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court held that flavoured milk would be classifiable under Tariff Heading 0402 99 90 and not under 2202 99 30. Accordingly, GST leviable would be 5% and not 12%. Thus, appeal filed by the petitioner allowed.
Facts- The petitioner is a registered dealer under the GST Act, dealing with milk and milk products. As part of its business, the petitioner processes and sells, flavoured milk, to customers within and outside the State of Andhra Pradesh.
For the purpose of payment of tax, on the sale of flavoured milk, the petitioner had filed its returns by placing the product “flavoured milk” in Tariff Heading No.0402 99 90. The 1st respondent rejected the classification placed by the petitioner and held that flavoured milk would fall under GST Tariff Heading No.2202 9930.
Conclusion- In a case where sweetened milk is to be sold, after bottling the same, it would fall within the meaning of Milk containing added sugar or other sweetening matter, under 0402. This drink could also be called a beverage, containing milk, falling under 2202. The entry, in 0402, is the special entry and the entry, under 2202, is the general entry and would have to give way to entry 0402. The same principle would apply to flavoured milk.
