GST Council Can Recommend Rates, But Can’t Determine Classification: HC Allows Petition Challenging Flavoured Milk Classification

Parle Agro Pvt. Ltd. Vs Union of India (Madras High Court)

In a significant judgment, the Hon’ble Madras High Court, in the case of M/s. Parle Agro Private Limited v. Union of India & Ors., [W.P. No. 16608 & 16613 of 2020 dated October 31, 2023], allowed a writ petition challenging the classification of flavoured milk under the GST regime. The court held that flavoured milk falls under Heading 0402 for the purpose of levying GST at the rate of 2.5 per cent.

The Hon’ble Madras High Court allowed the Writ Petition and held that the Flavoured Milk is to be classified under Heading 0402 of the Customs Tariff Act, 1975 (Customs Tariff Act) and is therefore, liable to Central Tax at the rate of 2.5 per cent in terms of Entry 8 to First Schedule to Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (Goods Rate Notification).

Facts:

M/s. Parle Agro Private Limited (“the Petitioner”) filed writ petition [W.P. No. 16608 of 2020] before the Hon’ble Madras High Court praying for issuance of a Writ of Certiorarified Mandamus for calling the record of the 31st GST Council relating to Minutes of Meeting held on December 22, 2018, pertaining to the decision to classify the ‘Flavoured Milk’ under HS Code 2202, and quashing the said entry.

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