Shree Mahalaxmi Cement Vs State of Gujarat & Ors. (Gujarat High Court)
Gujarat High Court held that Fly Ash Bricks and Fly Ash Blocks containing less than 90% fly ash content is liable to 5% GST and not 18% GST. Accordingly, order passed by advance ruling authority set aside.
Facts- The present petition is filed mainly contesting that the entry No. 225B in Schedule-I as amended vide the Notification No: 24/2018-Central Tax (Rate) dated 31.12.2018 is bad in the eyes of law inasmuch as it is interpreted that “Fly ash bricks” require 90% of more fly ash contents to fall in the tax GST slab of 5%; and thereby by pleased to quash and set aside the Notification No:24/2018-Central Tax (Rate) dated 31.12.2018 to the extent of amended Entry No.225B, as being totally unjust, illegal, arbitrary and/or being ultra vires to the constitution, environmental laws.
It is contested that the impguned order passed by Advance ruling authority is bad in the eyes of law in so far as it holds that Fly Ash Bricks produced by the petitioner to be covered by entry 453 of Schedule II of notification no 1/2017 Central Tax (Rate) Dt:-28.06.2017 and thereby liable to be taxed at 18% of GST after 01.01.201; and be pleased to hold that applicable rate of GST for “Fly Ash Bricks” fall under the entry 225B of Schedule I of notification no. 1/2017 Central Tax (Rate) Dt:- 28.06.2017 (as amended from time to time) and therefore taxable at the rate of 2.5% CGST + 2.5% SGST.
