National Fregrance Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court considered two writ petitions filed under Article 226 of the Constitution concerning denial of IGST refunds and non-finalisation of shipping bills relating to exports described as mouth fresheners, pan masala RG, and tobacco products. The petitioners, exporters registered under GST, the Tobacco Board, and holding valid FSSAI licences, had filed shipping bills in October 2024 for export of the said goods. Though the goods were exported, an alert led to their provisional release against furnishing of bank guarantees and bonds.
Samples were sent to the Central Revenues Control Laboratory (CRCL), which issued test reports dated 24 and 27 December 2024. These first CRCL reports described the samples as light brown granules having characteristics of tobacco, composed of betel nut, nicotine, catechu, lime, and flavouring substances, with recorded parameters such as moisture, ash, nicotine content, and pH. No objection was recorded in these reports. On this basis, the petitioners sought finalisation of shipping bills and release of the bank guarantees.
Subsequently, without any fresh samples being drawn, CRCL issued further reports dated 10 November 2025 in the nature of clarifications. These second CRCL reports stated that the samples had the characteristics of gutka, a chewing tobacco product under IS 10335:2016, and were neither pan masala nor food preparations under the relevant Food Safety Regulations. Based on these clarifications, the Commissioner of Customs issued letters dated 5 February 2025 to the GST Department requesting that IGST refunds to the petitioners not be processed.
