2025 (7) TMI 135 - HC - GST

Flavoured Milk GST Classification Dispute: Petition Disposed After Order-in-Original Issued, Appeal Route Advised

The MP HC disposed of a petition challenging orders refusing to classify 'Flavoured Milk' under Chapter 4 of the Customs Tariff Act, 1975 for 5% GST. The ... Classification of goods - Refusal to classify the 'Flavoured Milk' under Chapter 4 of First Schedule of the Customs Tariff Act, 1975 - HELD THAT:- The petitioner came to this Court to get an Advance Rulling of the product in question i.e. 'Flavoured Milk'. Now the Order-in-Original has been passed, therefore, stage of grant of Advance Rulling has gone. Now the petitioner is required to challenge the Order-in-Original by way of appeal to challenge the classification done by the adjudicating authority. The petition stands disposed off without expressing any opinion on the merits of the case. The Madhya Pradesh High Court, per Justice Vivek Rusia, disposed of the petition seeking quashment of orders dated 18/10/2019, 06/08/2019, and 14/01/2020, which refused to classify 'Flavoured Milk' under Chapter 4 of the First Schedule of the Customs Tariff Act, 1975. The petitioner sought an Advance Ruling that 'Flavoured Milk' falls under Chapter 4 and is taxable at 5% GST. However, after the impugned orders, the respondent issued a show cause notice, and an Order-in-Original dated 03/02/2025 was passed imposing GST, penalty, and interest by classifying the product under heading '2202'. The petitioner has deposited the tax liability, leaving only the classification issue. The Court held that since the Order-in-Original has been passed, the stage for Advance Ruling has lapsed, and the petitioner must challenge the classification through an appeal against the Order-in-Original. The petition was disposed of 'without expressing any opinion on the merits of the case.'