Classification of Goods — The present appeal has been filed against the advance Ruling No. KAR/ADRG 88/2019 Dated: 26th sept 2019.

The Authority for Advance Ruling examined the application filed by M/s. KCMPFL and vide ruling No. KAR/ADRG 88/2019 Dated: 26th sept 2019 arrived at the conclusion that Flavoured Milk is classifiable under Heading 0402 99 90.

The Appellant further pointed out that in the Central Excise Notification No 01/2011 CE dated 01.03.2011, Flavoured Milk of animal origin was classified under Chapter Heading 2202 90 30 and hence the Govt had recognised the classification of Flavoured Milk under Chapter 22 and not under Chapter 4.

The instant appeal has been filed before us with a plea that the ruling of the lower Authority is to be held as void ab initio since it appears that the same has been obtained by suppression of material facts. The contention is that the application filed by the respondent KCMPFL should not have been admitted by the Authority in terms of the proviso to Section 98(2) of the CGST Act since an investigation was already pending against them on the same issue of classification of “Flavoured Milk” by the Directorate General of GST intelligence, Bangalore Zonal Unit(DGGI).

We allow the appeal of the Department for the reasons mentioned above. The order No KAR ADRG 88/2019 dated 26.09.2019 passed by the Authority for Advance Ruling is declared void ab initio as it was vitiated by the process of suppression of material facts. We, however, do not intend to give a ruling on the issue of classification since the matter is pending in a proceeding under this Act. — Karnataka Co-Operative Milk Producers Federation Ltd. (Formerly Known As Kmf), In Re… [2020] 21 TAXLOK.COM 064 (AAAR-Karnataka)