The petitioner has filed these writ petitions challenging communications issued by the Additional Assistant Director DGGI /R1 dated 15.07.2020 & 18.07.2020.

2. Mr.Sundareswaran, learned Senior Panel Counsel, who has entered appearance on behalf of R1 has filed a written memo to the following effect:

F.No.INV/DGGI/CoZU/C/06/2020-GST                                                                     Dated: 14.09.2020

To

Shri V.Sundareswaran,

Senior Standing Counsel,

Hon’ble High Court of Madras

Sir,

Sub: W.P. No.12646/20 filed by The Tamil Nadu Co-operative Milk

Producers Union and No.12647/2020 filed by M/s The Salem

District Co-operative Milk Producers Union Ltd.- Reg.

_______

Please refer to your email dated 11.09.2020 informing W.P. No.12646 of 2020 filed by The Tamil Nadu Co-operative Milk Producers Union & W.P. No.12647/2020 filed by M/s. The Salem District Co-operative Milk Producers Union Ltd., Salem in the Hon’ble High Court of Madras and calling for clarification. It is informed that no communication dated 21.02.2020 has been made by this Office with either M/s Tamil Nadu Co-operative milk producers Union nor with M/s. The Salem District Co-operative Milk Producers Union Ltd.

2. In this regard, this Office has initiated investigation against M/s. The Salem District Co-operative Milk Producers Union Ltd., Salem, on the basis that they manufacture/supply beverage containing falvoured milk ready for consumption and are wrongly classifying the flavoured mil/milk shakes under HSN 0403 which attracts GST @ 5% instead of HSN 2202 99 30 that attracts GST @ 12%. Hence, an Authorisation dated 20.01.2020 for inspection in FORM GST INS-02 was issued by the Additional Director, Directorate General of GST Intelligence (DGGI), Coimbatore Zonal Unit under Section 67(1) of Central GST Act, 2017 to the additional Assistant Director, DGGI, Comibatore Zonal Unit for conducting inspection at the premises of M/s The Salem District Co-operative Milk Producers Union Ltd., Salem. Accordingly, the inspection of the premises of M/s. The Salem District Co-operative Milk Producers Union Ltd., Salem was conducted on 22.01.2020. Mahazar dated 22.01.2020 was drawn on the spot.

3. Further Summons dated 22.01.2020 under Section 70 of Central GST Act, 2017 was issued by the Proper Officer viz., Additional Assistant Director to m/s. The Salem District CO-operative Milk Producers Union Ltd., Salem and the same was received by the DGM (Finance), M/s. The Salem District co-operative Milk Producers Union Ltd, Salem. A voluntary statement of DGM (Finance) was recorded on 22.01.2020, wherein he deposed inter alia that the differential GST amount for flavoured milk/milk shakes worked out ₹ 2,14,26,618/- for the period 01.11.2017 to 21.01.2020. He further stated that in consultation with their auditors they have changed the GST HSN of flavoured milk/milk shakes to 0403 with GST @ 5% w.e.f. 01.11.2017 instead of 2202.

4. As the investigation is under progress, this office vide letters dated 15.07.2020 and 20.08.2020, requested M/s The Salem District Co-operative Milk Producers Union Ltd., Salem to intimate the details of differential GST payment mad in view of the voluntary statement dated 22.01.2020 of DGM (Finance). After completion of investigation, a demand notice under Section 73 or 74 of CGST Act, 2017 will be issued by the proper officer.

5. As the investigation is under progress and no demand has been made. It is request that it may be prayed before the Hon’ble High Court of Madras for quashing the Writ petitions i.e.., the W.P. No.12646 of 20 filed by the Tamil Nadu Co-operative Milk Producers Union and W.P. No.12647 of 2020 filed by M/s. The Salem District Co-operative Milk Producers Union Limited, Salem.

3. Thus it is clear that the impugned communication only solicits certain particulars from the petitioner and any further action in continuance thereof will be taken in accordance with law after hearing the petitioner. This is recorded. There is thus no basis for the apprehension expressed by the petitioner to the effect that demands would be raised on the basis of the impugned communication itself.

4. In the light of the aforesaid, these Writ Petitions are closed. No costs.