The Gujarat High Court has permitted the petitioner to file the refund application as chilling and packaging of milk is exempted under Goods and Service Tax (GST).
In the case of M/s Gujarat Co-Operative Milk Marketing on Ltd. vs. Union of India, the court observed that the activities of chilling and packaging services of milk which is provided by the contractors to the petitioners are exempted by the virtue of Serial No. 24 of the table to the Notification No. 11/2017.
The petitioner namely M/s Gujarat Co-Operative Milk Marketing in Ltd. is engaged in the marketing of milk and milk products which is produced by various District Co-Operative Milk Producers Unions which are basically the Co-operative societies of agriculturalists and farmers of various districts. One of the dairies engaged in the chilling and packaging of milk and the dairies were paying milk chilling charges and packaging charges to the service providers as per the rates agreed between the parties and as a consequence the invoices were made which included the taxes also.
The issue raised in this case was whether the petitioner is liable to pay Goods and Service Tax (GST) chilling and packaging charges or not?
The division bench of the High Court of Gujarat comprising of Justice Harsha Devani and Justice Sangeeta K. Vishen has held that the activities of chilling and packaging services of milk which is provided by the contractors to the petitioners are exempted by the virtue of Serial No. 24 of the table to the Notification No. 11/2017. And as a consequence guided the petitioner to file the refund application as chilling and packaging of milk is exempted under Goods and Service Tax (GST).
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