Heritage Foods Wins GST Battle, Set To Claim ₹4.53 Crore Refund

Image Source : Live Law

Heritage Foods Ltd has secured a significant legal victory as the Supreme Court dismissed a Special Leave Petition (SLP) filed by the Andhra Pradesh GST Department, paving the way for the company to claim a ₹4.53 crore refund under the Goods and Services Tax framework.

Key Developments In The Case

The dispute centered around the GST classification of flavoured milk, with the tax department arguing for a higher 12 percent rate under Tariff Heading 2202.
Heritage Foods maintained that flavoured milk falls under Tariff Heading 0402, attracting a lower GST rate of 5 percent.
The Andhra Pradesh High Court had earlier ruled in favor of the company, affirming the 5 percent rate and allowing refund eligibility.
The Supreme Court upheld this decision by dismissing the SLP, stating it was not inclined to interfere with the High Court’s judgment.

Implications For Heritage Foods

The ruling enables Heritage Foods to claim a GST refund of ₹4.53 crore, previously withheld due to the classification dispute.
It sets a precedent for similar dairy producers, reinforcing the lower tax treatment for flavoured milk products.
The decision also strengthens the company’s compliance position and may positively impact its financials in upcoming quarters.

Legal And Industry Context

The case aligns with earlier judgments from the Madras High Court and supports tariff interpretation principles favoring specific classification over general beverage categories.
Industry experts view this as a win for clarity in GST application across food and beverage segments.

Sources: TaxGuru, CaseMine, Indian Kanoon, StockInsights.ai, Andhra Pradesh High Court.