1 APHC010079292025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3525] WEDNESDAY ,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: Dodla Dairy Limited ...PETITIONER AND The Additional Commissioner State Tax And Appellate Authority and Others ...RESPONDENT(S) Counsel for the Petitioner: 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 2nd 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 2 of 0402. The Assessing Officer had also held that the conversion of milk into milk powder and the charges collected on such conversion was chargeable at the rate of 18%. 2. The petitioner being aggrieved by the two components of the assessment order had filed an appeal before the 1st respondent which came 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 milk would fall within the tariff heading 0402 and would not fall under the tariff heading 2202. 5. On the question of conversion charges and taxability of 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%. 3 6. Accordingly, following the earlier order of this Court in W.P.No.254 of 2024, this Writ petition is disposed of in the following manner: 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 the Assessing Officer for passing a fresh assessment order; 2) The assessing officer shall levy tax on the sale of flavoured milk by the petitioner, by treating the flavoured milk to be under tariff heading No.0402; 3) The question of taxability of conversion charges from milk to milk powder and the rate of tax, is left open for consideration by the Assessing Officer keeping in view the above submissions made by the petitioner. There shall be no order as to costs. As a sequel, miscellaneous petitions, pending if any, shall stand closed. _______________________ R. RAGHUNANDAN RAO,J ______________________ DR. K. MANMADHA RAO,J RJS 4 52. HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO & HON’BLE DR. JUSTICE K. MANMADHA RAO WRIT PETITION NO: 5699 of 2025 (per Hon’ble Sri Justice R. Raghunandan Rao) Dt: 19.03.2025 RJS