M/S United Breweries Limited vs. Union Of INDIA
Facts
M/s United Breweries Limited (the petitioner) filed a writ petition before the Karnataka High Court. The petitioner sought a direction to interpret Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017, specifically serial number 26(ica), to exclude job work services provided in relation to the manufacture or conversion of malt from barley. The respondents included the Union of India, the Goods and Services Tax Council, the Central Board of Customs and Indirect Taxes (CBIC), and the Malt Manufacturers Association. The core of the dispute revolved around the GST rate applicable to job work services for processing barley into malt.
Held
The Court noted that the petitioner's grievance would be resolved by the issuance of a Circular dated October 31, 2023, by the CBIC. This Circular clarifies that job work for processing 'Barley' into 'Malted Barley' attracts GST at the rate of 5% when it relates to food and food products. For job work relating to the manufacture of alcoholic liquor for human consumption, the applicable GST rate is 18%. The Court took the copy of this Circular on record. Consequently, the petition was disposed of based on this clarification, rendering the petitioner's original prayer moot. The Court did not independently rule on the interpretation of the notification but accepted the CBIC's clarification as resolving the dispute.
Key Issues
1. Whether job work services provided in relation to the manufacture/conversion of malt from barley fall within the ambit of serial number 26(ica) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, and if so, what is the applicable GST rate? The petitioner contended that the notification should be interpreted to exclude job work services for processing barley into malt. The respondents' arguments were not explicitly detailed in the provided text, but the resolution indicates their stance was addressed by a subsequent circular. The issue hinges on the interpretation of the specific entry in the notification concerning job work services and their classification for GST purposes.
Sections Cited
Notification No.11/2017-Central Tax (Rate) dated 28.06.2017
AI-generated summary — verify with the full judgment below
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NC: 2023:KHC:40150 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 20741 OF 2023 (T-CUS) BETWEEN:
M/S UNITED BREWERIES LIMITED COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956, UB TOWER, UB CITY, 24, VITTAL MALLYA ROAD, BENGALURU, KARNATAKA-560 001 REPRESENTED BY MR. SUJAN DEVARAJU, AUTHORISED SIGNATORY OF THE PETITIONER … PETITIONER (BY SRI SHASHANK SHEKAR, ADVOCATE AND MS. PRUTHA BHARATHI., ADVOCATE) AND:
UNION OF INDIA REPRESENTED THROUGH THE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110 001
THE GOODS AND SERVICE TAX COUNCIL REPRESENTED THROUGH ITS SECRETARY, TOWER-II, 5TH FLOOR, JEEVAN BHARTI BUILDING, NEW DELHI-110 001 NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA NC: 2023:KHC:40150
THE CENTRAL BOARD OF CUSTOMS AND INDIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW D
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