M/S.Dodia Dairy Limited vs. The Additional Commissioner (State Tax)
Original PDF →Facts
M/s. Dodla Dairy Limited (the petitioner) is engaged in the sale of milk and milk products. The petitioner was subjected to proceedings by the 1st respondent, the Additional Commissioner (State Tax) and Appellate Authority, who confirmed tax at higher rates of 12% and 18% on the sale of flavoured milk, including Almond and Badam flavoured milk, for the tax period 2019-20. The petitioner contended that the correct tax rate should be 5%. The original assessment order was dated 24.01.2022, uploaded on 28.01.2022, and the appellate order was dated 16.12.2024. The petitioner filed a writ petition challenging these orders.
Held
The Court allowed the Writ Petition, setting aside both the assessment order dated 24.01.2022 and the appellate order dated 16.12.2024. The Court followed its previous judgment in W.P.No.254 of 2024, dated 10.12.2024, which held that the relevant entry for the taxation of flavoured milk, including Almond and Badam flavoured milk, was entry No.0402 in the exercise tariff, and consequently, the applicable tax rate should be 5%. The matter was remanded back to the Assessment Authority to issue fresh proceedings applying the rate of tax at 5% on the sale of flavoured milk. The Court stated there would be no order as to costs.
Key Issues
1. Whether the action of the 1st Respondent in rejecting the appeal and confirming higher tax rates on flavoured milk, without considering the petitioner's contentions, violates principles of natural justice and the rule of law, contrary to the CGST/SGST/IGST Acts, 2017? The petitioner argued that the appellate authority failed to consider and discuss the various contentions raised in the grounds of appeal and additional grounds of appeal. The petitioner contended that the appellate order merely extracted their contentions without addressing them, rendering the order arbitrary, contrary to law, biased, and a violation of natural justice. The petitioner relied on the principles of natural justice and the rule of law. The respondents' arguments are not recorded in the judgment.
Sections Cited
CGST/SGST/IGST Acts, 2017
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
The Court made the following: ORDER
APHC010079302025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3508] TUE AY, THE TWENTY FIFTH DAY OF FEBRUARY TWO THOUSANDAND TWENTYFIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 4291/2025 Between: M/s.dodia Dairy Limited ...PETITIONER AND The Additional Commissioner State Tax and Others Counsel for the Petitioner: ...RESPONDENT(S) 1.SHAIKJEELANI BASHA Counsel for the Respondent(S):
GP FOR COMMERCIAL TAX The Court made the following order: (perHon’ble Sri Justice R Raghunandan Rao) The petitioner, which is in the business of sale of milk and milk products, was subjected to proceedings, dated 16.12.2024, passed by the 1"* respondent, confirming tax @ 12 % and 18 %, on sale of flavoured milk, including Almond and Badam flavoured milk, instead of taxing the same @ 5 %, for the tax period 2019-20, under the COST/ SGST/ IGST Acts, 2017. 2 RRR, J & MRK, j ^ W.P.No.4291 of 2025 This Court had earlier considered similar cases relating to the ^ question of rate of tax payable on sale of flavoured milk, including Almond and Badam flavoured milk. This Court, in its order, dated 10.12.2024 W.P.No.254 of 2024, had held that the relevant entry, under which the rate of tax on sale of flavoured milk should be taxed, was under entry No.0402 in the exercise tariff and consequently, the rate of tax payable on sale of such flavoured milk would be 5 %. 2. in 3. Following the said Judgment, this Writ Petition is allowed, setting aside the assessment order, dated 24.01.2022 and the appellate order, dated 16.12.2024, and remanding the matter back to the Assessment Authority to issue fresh proceedings by applying the rate of tax @ 5% on the sale of flavoured milk. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. K. TATA RAO DEPUTY REGISTRAR OFFICER
The Additional Commissioner (State Tax), and Appellate Authority, Tirupathi, Tirupathi District, State of Andhra Pradesh.
The Deputy Commissioner (ST) (LTU), Nellore Division, District, State of Andhra Pradesh.
The Assistant Commissioner (ST), Nellore State of Andhra Pradesh.
The Principal Secretary, Revenue (CT) Department, State of Andhra Pradesh, Secretariat, Amaravati, Guntur District, Andhra Pradesh.
One CC to Sri Shaik Jeelani Basha, Advocate [OPUC]
Two CCs to GP for Commercial Tax, [OUT]
Three CD Copies. //// To. Nellore, Nellore -1, Nellore Division, Nellore High Court of Andhra Pradesh. gi
w HIGH COURT DATED:25/02/2025 ORDER WP.No.4291 of 2025 I 27 MAR 2025 ^ . Current Section ^ ALLOWING 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.