Britannia Industries Limited Vs Commissioner of Commercial Taxes (Madras High Court)
Madras High Court has issued a directive to Britannia Industries Limited, instructing the company to file a representation with the appellate authority regarding the Goods and Services Tax (GST) classification of its ‘Britannia Winkin Cow’ flavored milk.
Britannia had petitioned the court for a direction to classify its flavored milk product under Tariff 0402 of the Customs Tariff Act, 1975, arguing that it should not fall under Chapter 22. The company’s legal counsel highlighted that the Tamil Nadu State Appellate Authority for Advance Ruling (AAAR) had previously rejected their classification request on June 30, 2021.
During the proceedings, Britannia’s counsel cited a judicial precedent from the Andhra Pradesh High Court in Sri Vijaya Visakha Milk Producers Company Ltd. Vs. Asstt. Commissioner of Central Tax [(2025) 170 com 735 (Andhra Pradesh)], which held that flavored milk was indeed classifiable under Tariff 0402. The company also informed the court about a bank attachment and requested its swift removal.
The Special Government Pleader for the Commercial Taxes Department suggested that since the AAAR had already rejected the petitioner’s request, the court should direct Britannia to approach the appropriate appellate authority.
Considering these submissions, the Madras High Court has directed Britannia to submit a representation to the appellate authority within two weeks. The appellate authority is then mandated to consider and dispose of this representation on its merits, and in accordance with law, within four months. Furthermore, the court ordered the respondents to issue directions to Britannia’s banker immediately for the de-freezing of the company’s bank account.
