Case Law Details

Case Name : Haryana Ayurvedic Drugs Manufacturers Assocication (HADMA) Vs Central Goods & Service Tax & Ors. (Punjab & Haryana High Court)
Appeal Number : CWP No. 11474 of 2020
Date of Judgement/Order : 11/08/2020
Related Assessment Year :
Courts : All High Courts (5991) Punjab and Haryana HC (288)

Haryana Ayurvedic Drugs Manufacturers Assocication (HADMA) Vs Central Goods & Service Tax & Ors. (Punjab & Haryana High Court)

Instant writ petition seeking quashing of show cause notices issued by the Taxation authorities to the manufacturers of the ‘AUS ingredients bases sanitizer’ for depositing the GST at the Tariff Rate of 18% under the HS Coder 3808-94 instead of 12%.

The High Court forwarded the application to GST Council for appropriate consideration of exact GST rate applicable on Ayurvedic/ Unani/ Sidha (AUS) ingredient based sanitizers in accordance with law. Accordingly the petition is disposed off with the hope that the same shall be taken up for consideration by the Council at the earliest, considering the issue involved.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

Petitioner- Haryana Ayurvedic Drugs Manufacturers Association has preferred the instant writ petition seeking quashing of show cause notices (one of them being attached as P-12 dated 09.07.2020) issued by the Taxation authorities to the manufacturers of the “AUS ingredientsbases sanitizer” for depositing the GST at the Tariff Rate of 18% under the HS Coder 3808-94 instead of 12%.

Ld. Counsel for the petitioner has argued that the impugned show cause notices have been wrongly issued by the respondent-authority by misclassifying the same as “alcohol based sanitizer”, whereas the sanitizers being manufactured by them are Ayurvedic/ Unani/ Sidha (AUS) ingredient based sanitizers and thus different from alcohol based sanitizers. It is further argued that the sanitizers manufactured by them come within the 12% GST bracket and not 18% as levied by the authorities. It is submitted that a comprehensive representation in this regard has already been made to respondents on 27.07.2020 (P-9), however no action on said representation has been taken till date.

On the last date of hearing Mr. Bindlish had sought a day’s adjournment to seek instructions regarding consideration of contents of the representation dated 27.07.2020 (P-9) with regard to re-classification of ASU ingredient based sanitizers.

Today, he on instructions submits that the representation dated 27.07.2020 (P-9), if already submitted, shall be forwarded to the establishment of the GST Council for appropriate consideration in accordance with law.

Disposed of accordingly.

It is hoped that the same shall be taken up for consideration by the Council at the earliest, considering the issue involved.

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