Case Summary
Case Title: Britannia Industries Limited v. Commissioner of Commercial Taxes & Anr.
Court: High Court of Judicature at Madras
Petition No.: W.P.No.23839 of 2025, W.M.P.No.26836 of 2025
Category: Classification under GST
Date of Judgement: 07.07.2025
Relevant Sections: Section 103(2) of CGST Act, 2017; Tariff Heading 0402, Customs Tariff Act, 1975
Facts (Paras 1–3)
Britannia Industries Limited filed a writ seeking classification of its product “Winkin Cow Flavoured Milk” under Tariff Heading 0402, which covers milk and cream, and not under Chapter 22 which relates to beverages. The petitioner highlighted that the Tamil Nadu AAAR in 2021 had rejected its plea, but pointed to a Division Bench judgment of the Andhra Pradesh High Court in Sri Vijaya Visakha Milk Producers Co. Ltd. v. Assistant Commissioner of Central Tax (2025) 170 taxmann.com 735, which held flavoured milk to be classifiable under 0402. The petitioner also complained of a bank account attachment, requesting relief.
Questions (Paras 2–4)
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Whether flavoured milk is rightly classifiable under Tariff Heading 0402 (milk and cream) instead of Chapter 22 (beverages)?
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Whether the petitioner is entitled to relief despite AAAR’s earlier rejection, given binding precedents?
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Whether the bank attachment imposed due to tax disputes could be lifted pending resolution?
Observations (Paras 4–5)
The Court noted that the AAAR had rejected the classification claim earlier, but the petitioner relied on higher judicial precedent supporting its stand. The Special Government Pleader argued that the appropriate remedy lay before the appellate authority. Recognizing the trade importance of consistency in classification, the Court balanced the need for final resolution with immediate relief against harsh recovery measures.
Judgement (Paras 5–6)
The Court directed Britannia to make a representation to the appellate authority within two weeks, with the authority required to decide within four months on merits. Simultaneously, the Court ordered respondents to instruct the banker to de-freeze the petitioner’s bank accounts forthwith, ensuring business continuity. The writ petition was disposed of accordingly, with no costs imposed.
Cases Referred
| Case | Court & Citation | Verdict |
|---|---|---|
| Sri Vijaya Visakha Milk Producers Co. Ltd. v. Asst. Commissioner of Central Tax | Andhra Pradesh HC, (2025) 170 taxmann.com 735 | Held flavoured milk classifiable under Tariff 0402 as milk and milk products, not beverages. |
Between Fine Lines
This judgment underscores that flavoured milk, being essentially milk with additives, is arguable under dairy classification (0402) rather than beverages (2202). For the industry, this case highlights that judicial precedents can override advance rulings, and relief from coercive measures like bank attachment can be obtained while substantive classification disputes are pending.
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