Anik Milk Products Private Limited vs. CGST And Central Excise

Held

The Court held that since an Order-in-Original has been passed against the petitioner, the stage for granting an Advance Ruling has gone. The petitioner's proper recourse now is to challenge the Order-in-Original by filing an appeal against the classification determined by the adjudicating authority. The Court did not express any opinion on the merits of the classification dispute itself. The petition was disposed of with the direction that the petitioner should pursue the appellate remedy.

Facts

The petitioner, Anik Milk Products Private Limited, filed a writ petition seeking to quash orders dated 18/10/2019, 06/08/2019, and 14/01/2020. The petitioner sought an Advance Ruling to classify 'Flavoured Milk' under Chapter 4 of the First Schedule of the Customs Tariff Act, 1975, making it taxable at 5% GST. Following the impugned orders, the respondent issued a show cause notice. The petitioner participated in proceedings before the Assistant Commissioner, CGST and Central Excise. Subsequently, an Order-in-Original dated 03/02/2025 was passed against the petitioner, imposing GST, penalty, and interest by classifying 'Flavoured Milk' under head '2202'. The petitioner stated that the tax liability has been deposited, and only the classification issue remains.

Key Issues

1. Whether the petitioner is entitled to an Advance Ruling on the classification of 'Flavoured Milk' under Chapter 4 of the First Schedule of the Customs Tariff Act, 1975, for GST purposes, given that an Order-in-Original has since been passed. Petitioner's contention: The petitioner approached the court for an Advance Ruling on the classification of 'Flavoured Milk'. Revenue's contention: The revenue's counsel produced the Order-in-Original dated 03/02/2025, which classified 'Flavoured Milk' under head '2202' and imposed GST, penalty, etc. The revenue implicitly argues that the stage for Advance Ruling has passed.