Reckitt Benckiser (India) Private Limited Vs State of Tamil Nadu (Madras High Court)
The Madras High Court disposed of a writ petition filed by Reckitt Benckiser (India) Private Limited challenging a GST assessment order concerning Harpic Toilet Cleaner and Lizol Floor Cleaner for the period between 1st July 2017 and 13th November 2017. This was the second round of litigation in the matter. Earlier, the Court had quashed the initial assessment order dated 12th March 2021 in W.P.No.12942 of 2021, citing non-application of mind and non-disclosure of a proposal from the enforcement wing, and remitted the matter for fresh consideration by the assessing authority with liberty to pass a de novo order after granting a reasonable opportunity to the petitioner.
The dispute arises primarily around the classification of the products under the Harmonized System of Nomenclature (HSN) codes and the applicable GST rates. The petitioner had been classifying Harpic and Lizol under Item No. 87 of the Third Schedule, HSN Code 38089400, categorizing them as disinfectants liable to 18% GST. The assessing authority treated the products as falling under Entry 31 of the Fourth Schedule, HSN Code 3402, which encompasses cleaning preparations including surface-active agents, and applied a tax rate of 28%. The department’s classification was based on the active chemical ingredients and their proposed usage, while the petitioner argued that Harpic and Lizol are disinfectants intended for cleaning toilet and floor surfaces, not for human body use.
