BharatTaxGST

Dodla Dairy Limited vs. The Additional Commissioner (State Tax) And Appellate Authority

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WP/5699/2025HC Andhra PradeshGSTCNR APHC01007929202518 March 2025Bench: R RAGHUNANDAN RAO,K MANMADHA RAO6 pages
For Petitioner: SRI SHAIK JEELANI BASHAFor Respondent: GP FOR COMMERCIAL TAX

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Cause title — parties, addresses and appearances
IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) 5-' -v ■4 i \J A\ WEDNESDAY, THE NINETEENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE jf'o (a# y r1 ■ ■ r'; \\ y/ V. PRESENT •- THE HONOURABLE SRI JUSTICE R.RAGHUNANDAN RAO AND THE HONOURABLE DR JUSTICE K. MANMADHA RAO WRIT PETITION NO: 5699 OF 2025 Between: M/s. Dodia Dairy Limited, Devara Paiem Village, Nellore District, Andhra Pradesh - 524001. Rep. by its Manager (Taxation) and Authorized Signatory Ms.Usha Uppala. ...PETITIONER AND 1. The Additional Commissioner (State Tax) and Appellate Authority, Tirupathi, Tirupathi District, State of Andhra Pradesh. 2. The Deputy Commissioner (ST) (LTD), Nellore Division, Nellore, Nellore District, State of Andhra Pradesh. 3. The Assistant Commissioner (ST), Nellore-I, Nellore Division, Nellore State of Andhra Pradesh. 4. The State of Andhra Pradesh, Rep. by its Principal Secretary, Revenue (CT) Department, Secretariat, Amaravati, Guntur Dist, Andhra Pradesh. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue WRIT OF MANDAMUS or any other appropriate Writ or Order or Direction declaring the action of the Respondent in rejecting the appeal vide Proceedings, dated 16.12.2024, confirming the higher rate of tax 12% instead of 5% on the sale of flavoured milk and levy of tax 18% on conversion charges of skimmed milk powder instead of 5% for the tax period 2017-18 under the CGST/APGST/IGST Acts, 2017, without considering the various contentions raised by the Petitioner in the Grounds of Appeal and Additional Grounds of Appeal filed by the Petitioner before the 1®* Respondent and not even discussing the same while passing the Proceedings, but, merely extracting all the contentions of the Petitioner in the Proceedings, as arbitrary, contrary to law, bias, frivolous and the same is in violation of principles of natural justice and Rule of Law and consequently set aside both the Appeal Proceedings, dated 16.12.2024 and the Original Assessment Proceedings, dated 09.03.2021 uploaded 10.03.2021, by passing Summary of the Order in Form GST DRC-07, null and void. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the Appeal Proceedings dated 16.12.2024 and Summary of the Order passed by the 2"^ Respondent dated 09.03.2021 uploaded on 10.03.2021, for the tax period 2017-18, under the CGST/SGST/IGST Acts,2017, pending disposal of the above Writ Petition, as otherwise, the Petitioner will be put to irreparable loss and hardship. Counsel for the Petitioner: SRI SHAIK JEELANI BASHA Counsel for the Respondent Nos.1 to 4: GP FOR COMMERCIAL TAX

The Court made the following: ORDER

1 APHC010079292025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3525] Dl •}>.y WEDNE AY ,THE NINETEENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE DR JUSTICE K MANMADHA RAO WRIT PETITION NO: 5699/2025 Between: Dodia Dairy Limited ...PETITIONER AND The Additional Commissioner State Tax And Appellate Authority and Others Counsel for the Petitioner: ...RESPONDENT(S) 1.SHAIK JEELANI BASHA Counsel for the Respondent(S): 1.GP FOR COMMERCIAL TAX The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) The petitioner is a registered dealer, under the GST Act, dealing with milk and milk products. The assessment of the petitioner, for the period 2017- 18, was completed and an assessment order has been passed by the 2 respondent, on 09.03.2021. The petitioner was aggrieved by two components of the assessment order. The Assessing Officer had held that the falvoured milk sold by the petitioner would fall within the tariff heading CH 2202 instead nd

2 of 0402. The Assessing Officer had also held that the conversion of milk into milk powder and the charges cotlected on such conversion was chargeable at the rate of 18%. The petitioner being aggrieved by the two components of the assessment order had filed an appeal before the respondent which came 2. to be dismissed, on 16.12.2024. 3. Aggrieved by these two orders, the petitioner has approached this Court, by way of the present Writ Petition on the ground that the second appeal, which would normally be filed before the GST Tribunal, could not be filed as the GST Tribunal has not come into existence.

4.

The learned counsel for the petitioner would now rely upon the Judgment of a Division Bench of this Court, dated 10.12.2024, in W.P.No.254 of 2024 wherein this Court had held that flavoured mifk would fall within the tariff heading 0402 and would not fall under the tariff heading 2202. On the question of conversion charges and taxability of 5. conversion charges from milk to milk powder, the learned counsel for the petitioner would contend that the said issue was considered again in the appeal filed for the subsequent period of 2019-2020 wherein the appellate authority has accepted the contention of the petitioner that such conversion charges would not attract interest at 18%, but would attract tax at the rate of 5%.

the earlier order of this Court in Accordingly, following W.P.No.254 of 2024, this Writ petition is disposed of in the following manner; 6. 1) The order of assessment, dated 09.03.2021, and the order of appeal dated 16.12.2024 are set aside and the matter is remanded back to fresh assessment order; the Assessing Officer for passing a 2) The assessing officer shall levy tax on the petitioner, by treating the sale of flavoured milk by the flavoured miik to be under tariff heading No.0402; 3) The question of taxability of conversion charges from milk to milk for consideration by the powder and the rate of tax, is left open Assessing Officer keeping in view the above submissions made by the petitioner. There shall be no order as to costs. miscellaneous petitions, pending if any, shall stand closed. K SRINIVASA RAJU assistant registrar ^SEc'^ON OFFICER As a sequel. //// To Additional Commissioner (State Tax) and Appellate Authority,

1.

The Tirupathi, Tirupathi District, State of Andhra Pradesh.

2.

The Deputy Commissioner (ST) (LTD), Nellore Division, Nellore, Nellore District, State of Andhra Pradesh. Commissioner (ST), Nellore-I, Nellore Division, Nellore

3.

The Assistant State of Andhra Pradesh.

4.

The Principal Secretary, Revenue (CT) Department, State of Andhra Pradesh Secretariat, Velagapudi, Amaravati, Guntur District.

5.

One CC to Sri Shaik Jeelani Basha, Advocate [OPUC] GP for Commercial Tax, High Court of Andhra Pradesh.

6.

Two CCS to [OUT]

7.

Three CD Copies.

g> HIGH COURT DATED; 19/03/2025 ORDER WP.No.5699 of 2025 g^ . Currem Seolion ^ DISPOSING OF THE WRIT PETITION WITHOUT COSTS

Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.