Case Law Details
Small Scale Ice Cream Manufacturer Association Vs Union of India (Chhattisgarh High Court)
Ice Cream is not luxurious item; Chhattisgarh HC directs GST council to consider allowing benefit of Section 10(1) to Ice Cream Manufacturers
In the case of Small Scale Ice Cream Manufacturer Association Vs Union of India, the Chhattisgarh High Court addressed the exclusion of small scale ice cream manufacturers from the benefits of Section 10(1) of the GST Act. The petitioners sought relief, challenging the GST Council’s decision and the related notification.
The petitioners argued that ice cream, being a widely consumed product, should not be treated as a luxurious item akin to pan masala or tobacco. They contended that the classification by the GST Council lacked reasonable grounds and violated the principles of Article 14 of the Constitution of India.
The court observed that the GST Council’s decision lacked justification for excluding ice cream from the benefits of Section 10(1) of the GST Act. It emphasized the need for reasonable classification in taxation laws and the consideration of socio-economic factors. Citing relevant judgments, including those of the Supreme Court and the High Court of Delhi, the court directed the GST Council to reconsider its decision within three months.
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