{"id":2875,"date":"2025-03-01T09:47:26","date_gmt":"2025-03-01T04:17:26","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=2875"},"modified":"2025-03-01T09:47:26","modified_gmt":"2025-03-01T04:17:26","slug":"flavoured-milk-to-be-taxed-under-tariff-entry-0402-which-includes-milk-with-sugar-or-other-sweetening-matter-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/flavoured-milk-to-be-taxed-under-tariff-entry-0402-which-includes-milk-with-sugar-or-other-sweetening-matter-hc","title":{"rendered":"Flavoured Milk to Be Taxed Under Tariff Entry 0402 Which Includes Milk With Sugar or Other Sweetening Matter | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000388658\/flavoured-milk-to-be-taxed-under-tariff-entry-0402-which-includes-milk-with-sugar-or-other-sweetening-matter-hc\">Sri Vijaya Visakha Milk Producers Company Ltd. Versus Asst. Commissioner of Central Tax- (2025) 26 Centax 408 (A.P.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>R. Raghunandan Rao<\/strong> &amp; <strong>Maheswara Rao Kuncheam<\/strong>, JJ.<\/li>\n<li><strong>Shri A. Sarveswar Rao<\/strong> for the Petitioner.<\/li>\n<li><strong>S\/Shri Santhi Chandra<\/strong>, Jr. Standing Counsel, <strong>Y.V. Anil Kumar<\/strong>, Central Govt. Counsel &amp; <strong>Y.N. Vivekanada<\/strong> for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, a registered dealer under the GST Act, engaged in the business of milk and milk products, processed and sold flavoured milk within and outside Andhra Pradesh. The assessee classified &#8220;flavoured milk&#8221; under GST Tariff Heading (TH) 0402 99 90 while filing returns. However, the Assistant Commissioner rejected this classification, holding that flavoured milk should be taxed under TH 2202 9930, categorizing it as a special drink. Aggrieved by this decision, the assessee filed a writ petition before the Andhra Pradesh High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court, after analysing the relevant tariff entries, held that TH 0402 includes not only milk but also milk-based products such as cream, skimmed milk powder, and milk food for babies. It noted that even products containing added sugar or other sweetening matter remain classified under TH 0402. The court rejected the tax authority\u2019s assertion that the addition of 0.5% Badam flavour transformed flavoured milk into a new product under TH 2202. Accordingly, the High Court ruled that flavoured milk falls under TH 0402 and not under TH 2202.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Parle Agro Pvt. Ltd. v. Union of India \u2014 W.P. No. 16608 and 16613 of 2020, dated 31.10.2023, \u2014 Followed<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Sri Vijaya Visakha Milk Producers Company Ltd. Versus Asst. Commissioner&hellip;<\/p>\n","protected":false},"author":5,"featured_media":2909,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-2875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Flavoured Milk to Be Taxed Under Tariff Entry 0402 Which Includes Milk With Sugar or Other Sweetening Matter | HC<\/title>\n<meta name=\"description\" content=\"The Andhra Pradesh High Court ruled that flavoured milk falls under GST Tariff Heading 0402, rejecting its classification as a special drink under TH 2202.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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