📰 𝗔𝗹𝗹𝗮𝗵𝗮𝗯𝗮𝗱 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝗚𝗦𝗧 𝗖𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗙𝗹𝗮𝘃𝗼𝗿𝗲𝗱 𝗖𝗮𝗿𝗱𝗮𝗺𝗼𝗺 📢 𝗖𝗼𝘂𝗿𝘁’𝘀 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁: "The petition challenging the GST Council’s classification decision is accepted for consideration, with a focus on the legal authority and rationale behind the tax rate."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: 𝗗𝗵𝗮𝗿𝗮𝗺𝗽𝗮𝗹 𝗦𝗮𝘁𝘆𝗮𝗽𝗮𝗹 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝘃𝘀 𝗨𝗻𝗶𝗼𝗻 𝗼𝗳 𝗜𝗻𝗱𝗶𝗮 𝗖𝗼𝘂𝗿𝘁: Allahabad High Court 𝗗𝗮𝘁𝗲: 21-Aug-2023

𝗜𝘀𝘀𝘂𝗲: Whether the GST Council has the power to classify “flavored and coated illaichi” under heading 21:06, subjecting it to an 18% GST rate.

𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱: The Dharampal Satyapal Group, a major player in the food industry, filed a writ petition challenging the GST Council's authority to categorize flavored and coated cardamom under an 18% GST bracket. This classification was initially decided during a GST Council meeting on 17-Sep-2021, followed by Circular No. 163/19/2021-GST issued on 6-Oct-2021, which formalized the classification. The petitioner seeks to quash the Show Cause Notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) and to restrain the Additional/Joint Commissioner (Adjudication) CGST, Noida, from proceeding with the adjudication.

⚖ 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The court acknowledged the significance of the matter due to the high financial implications and the broader impact on classification authority within the GST framework. The Allahabad High Court admitted the writ petition, indicating a willingness to scrutinize the GST Council’s classification power and the procedural fairness in its decision-making process.

📜 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: This case could set a precedent on the GST Council’s authority in product classification and its impact on tax rates, particularly for flavor-modified food products. The outcome may influence similar cases where classification disputes arise due to variations in flavoring, coating, or other product modifications, potentially affecting tax liabilities for businesses in the food sector.