Schulke India Pvt. Ltd. Vs Union of India (Bombay High Court)
Bombay High Court held that press release dated 15.07.2020 classifying alcohol-based hand sanitisers as “disinfectants” and not “medicaments” and urging the authority to levy tax at 18% is quashed.
Facts- The Petitioner is engaged in trading of hand rubs/sanitisers and antiseptics. The Petitioner claims that hand rubs/sanitisers and antiseptics are used as pharmaceutical aid (solvent) or as antibacterial/antisepsis solutions in the hospitals and have been sold as a “medicament” under the erstwhile excise/VAT regime as well as the GST regime. Thus, the products are classified under HSN 3004.
The first Respondent issued a Press Release dated 15.07.2020 purporting to classify alcohol-based hand sanitisers, which would include hand sanitisers that the Petitioner deals in as “disinfectants”, thereby attracting a GST rate of 18%.
Based upon the Press Release, the second Respondent issued a show cause notice cum demand notice dated 17.04.2023 requiring the Petitioner to show cause why the differential tax/duties along with interest and penalties be not recovered from the Petitioner alleging alcohol-based hand rubs/sanitisers and antiseptics were not “medicaments” but were “disinfectants” exigible to tax at the rate of 18% per annum.
The Petitioner has paid the differential duty under the protest. Thus, vide the present petition, the petitioner challenges the impugned Press Release dated 15.07.2020 and the impugned show cause notice cum demand notice dated 17.04.2023.
