Since offence case is already pending before DGGI, on classification of flavoured milk, the application is rejected as “inadmissible”
Classification of goods- The Applicant sought advance ruling in respect of the classification of the product “Flavoured Milk” and the rate of GST thereon. It is an undisputed fact that the applicant supplies the impugned product under the brand name “Nandini”, to the owner of the said brand M/s. KMF, against whom an offence case is pending before DGGI, Bangalore.
Held that- The applicant themselves admitted that M/s KMF hold 90% shares and hence have management / administrative control over the applicant. M/s KMF are the owners of ‘Nandini’ brand, against whom an offence case is pending before DGGI, Bengaluru on classification of flavoured milk. Thus it is very clear that the applicant, being the job worker to M/s KMF, becomes part of M/s KMF, as they also supply the same product of ‘flavoured milk’ and hence is bound to oblige the conclusion of the proceedings in this regard. Hence the pendency of the proceedings automatically applies to the applicant also. Therefore the instant application is liable for rejection, under first proviso to Section 98(2) of the CGST Act 2017.