Vijaya Visakha Milk Producers Company Ltd. Vs Asst. Commissioner Of Central Tax and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court held that flavoured milk falls under GST Tariff Heading No.0402 99 90 and not under GST Tariff Heading No.2202 9930. Accordingly, writ petition is 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, while considering the returns filed by the petitioner for the period July, 2017 to July, 2019 had rejected the classification placed by the petitioner and held that flavoured milk would fall under GST Tariff Heading No.2202 9930.
On this basis the 1st respondent not only raised a demand for shortfall of tax but also a penalty u/s. 122(2) (b) and Section74 of the Central GST act, and corresponding Sections of APGST Act and Integrated GST Act. This order is assailed before this Court, by way of this Writ Petition.
