Madras High Court
Marico Limited … vs Additional Commissioner on 12 February, 2026
Author: C.Saravanan
Bench: C.Saravanan
W.P.No.25157 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 12.02.2026
CORAM :
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.No.25157 of 2023
and
W.M.P.No.24575 of 2023
Marico Limited … Petitioner
Vs.
Additional Commissioner,
Office of the Commissioner of GST and
Central Excise,
No.1, Goubert Avenue (Beach Road),
Puducherry – 605 001. … Respondent
Prayer: Writ Petition filed under Article 226 of the Constitution of India, for
issuance of a Writ of Certiorari, to call for the impugned Show Cause Notice
No.105/2023-AUDIT-I dated 26th June, 2023 on the file of the Respondent
and quash the same.
For Petitioner : Mr.Ramnath Prabhu
for Mr.Y.Prakash
For Respondent : Mr.Sai Srujan Tayi
Senior Standing Counsel
ORDER
In this Writ Petition, the Petitioner is before this Court challenging the impugned Show Cause Notice No.105/2023-AUDIT-I dated 26.06.2023 for the tax period 2017-2020.
1/6https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm ) W.P.No.25157 of 2023
2. In the said Show Cause Notice, there were proposals for demanding tax on various headings related to manufacturing, packaging and selling of ‘Coconut Oil’ by the Petitioner under the following heads:-
S.No. Issue Involved Period Proposed GST demanded in INR 1 Wrong classification of 2017-2020 Rs.374,32,86,340/-
Coconut Oil in retail packing (IGST RS.374,04,86,742/- under Tariff Heading 1513 instead of Tariff Heading CGST Rs.13,99,799/- & SGST 3305 resulting in short Rs.13,99,799/-) payment of GST 2 Excess availment of ITC 2019-2020 Rs.4,05,11,097/-
under ISD head of GSTR-3B (IGST Rs.4,05,11,097/-) when compared to GSTR-2A 3 Interest payable due delayed 2017-2020 Rs.37,513/-
reckoning of invoices in (IGST Rs.23,673/- GSTR-1/GSTR-3B CGST Rs.6,920/- & SGST Rs.6,920/-) 4 Short payment of GST due to October 2017 Rs.3,06,708/-
mismatch of value of GST March 2018 (IGST Rs.2,56,220/- payable shown in GSTR-1 and GSTR-3B March 2019 CGST Rs.25,244/-
October 2019 SGST Rs.25,244/-) 5 Short payment of IGST in September Rs.5,24,648/-
September 2019 due to 2019 IGST Rs.5,24,648/- wrong adjustment of time barred credit note reported in GSTR-1 return of October 2019 2/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm ) W.P.No.25157 of 2023 S.No. Issue Involved Period Proposed GST demanded in INR 6 Wrong availment of ITC 2017-2019 Rs.56,290/-
pertaining to blocked Credit CGST Rs.28,145/-
viz., ITC availed on
Transport of Employees and SGST Rs.28,145/-
Food and Beverages
7 Wrong availment of ITC March 2019 Rs.1,39,032/-
without valid document CGST Rs.69,516/-
SGST Rs.69,516/-
8 Wrong availment of ITC on 2017-2020 Rs.3,12,01,499/-
comparing GSTR-3B with (IGST Rs.2,01,03,847/-
GSTR-2A
CGST Rs.55,55,120/- &
SGST Rs.55,42,532/-)
3. When the Show Cause Notice was issued, the issue relating to classification was pending before the Hon’ble Supreme Court at the behest of the Respondent in Civil Appeal No.1766 of 2009 in the case of Commissioner of Central Excise Salem Vs. M/s.Madhan Agro Industries (India) Private Limited.
4. The Hon’ble Supreme Court has now given its decision in M/s.Madhan Agro Industries (India) Private Limited (cited supra) vide Order dated 18.12.2024. Operative portion of the Order of the Hon’ble Supreme Court which settles the dispute as far as the classification of ‘Coconut Oil’ is concerned reads as under:-
3/6https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm ) W.P.No.25157 of 2023 “48. On the above analysis, we are of the opinion that pure coconut oil sold in small quantities as ‘edible oil’ would be classifiable under Heading 1513 in Section III-Chapter 15 of the First Schedule to the Central Excise Tariff Act, 1985, unless the packaging thereof satisfies all the requirements set out in Chapter Note 3 in Section VI-Chapter 33 of the First Schedule to the Central Excise Tariff Act, 1985, read with the General / Explanatory Notes under the corresponding Chapter Note 3 in Chapter 33 of the Harmonized System of Nomenclature, whereupon it would be classifiable as ‘hair oil’ under Heading 3305 in Section VI-Chapter 33 thereof.”
5. Considering the same, the case is remitted back to the Respondent to pass a fresh order on merits taking note of the above decision of the Hon’ble Supreme Court and on the other issues in respect of which the impugned Show Cause Notice has been issued.
6. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petition is closed.
12.02.2026 Neutral Citation : Yes / No arb 4/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm ) W.P.No.25157 of 2023 To:
Additional Commissioner, Office of the Commissioner of GST and Central Excise, No.1, Goubert Avenue (Beach Road), Puducherry – 605 001.5/6
https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm ) W.P.No.25157 of 2023 C.SARAVANAN, J.
arb W.P.No.25157 of 2023 and W.M.P.No.24575 of 2023 12.02.2026 6/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/02/2026 07:57:58 pm )