Dharampal Satyapal Group challenges the Power of GST Council classifying "flavoured and coated illaichi"

Dharampal Satyapal Group challenges the Power of GST Council classifying "flavoured and coated illaichi" under heading 21:06 and attracting GST at the rate of 18% before Allahabad High Court. It would be interesting to see the outcome of this case as high stakes are involved.

Dharampal Satyapal Limited (the Appellant) is engaged in the business of manufacturing, supplying and distribution of silver-coated illaichi {Rajnigandha Silver Pearls/RG illaichi (2013)}, Mouth Freshner {Pass Pass (1999)} and silver coated dates {Tulsi Royal Khajoor (2018)}.

17-Sep-2021: #GST_Council Meeting is held and Press Release is issued classifying "flavoured and coated illaichi" under heading 21:06 and attracting GST @ 18%. Circular No. 163/19/2021-GST dated 06-Oct-2021 is issued to give effect to this decision. #GSTInsightsByARR

Show Cause Notice is issued by DGGI and Addl./Joint Commissioner (Adjudication) CGST, NOIDA is in process of adjudication. Writ has been filed by the Appellant to quash SCN and restrain Addl./Joint Commissioner (Adjudication) CGST, NOIDA from adjudication.

Allahabad High Court has accepted the writ as the Court found this case fit for consideration. Title: Dharampal Satyapal Limited vs Union of India Court: Allahabad High Court Citation: Writ Tax No. - 979 of 2023 Dated: 21-Aug-2023