Malabar Regional Co-Operative Milk Producers Union Limited Vs State of Kerala (Kerala High Court)
The Petitioner, Malabar Regional Co-operative Milk Producers Union Limited, approached the Kerala High Court challenging six assessment orders (Exts. P1 to P6) that levied Goods and Services Tax (GST) at the rate of 12% on flavoured milk, instead of the rate of 5%. The Petitioner, a co-operative society engaged in manufacturing milk and milk products, contended that the demand for 12% GST was arbitrary and unjust.
The Petitioner submitted that the correct GST rate for flavoured milk is 5%, citing binding judicial precedents. They specifically relied on a judgment from the Andhra Pradesh High Court (Writ Petition No. 254 of 2024). That judgment determined that sweetened milk, and by extension, flavoured milk, should be classified under Tariff Entry 0402 (“Milk containing added sugar or other sweetening matter”), which is the special entry, rather than Entry 2202 (“beverage, containing milk”), which is the general entry. This classification places the product under the 5% tax bracket. The Andhra Pradesh High Court’s conclusion was fortified by a Madras High Court judgment (M/s Parle Agro Pvt. Limited Vs. Union of India, dated October 31, 2023) that had reviewed the relevant law and tariff changes.
