Manufacturers Traders Association & Anr. vs. Union Of INDIA & Ors.
Held
The Court held that the GST Council's recommendations are to be followed, and the Council itself clarified that the recommendation for fabrics under Chapters 56-59 was indeed 12%, not 5%. The Union Minister's statement in Rajya Sabha did not override the Council's decision.
Facts
The petitioners sought a writ directing the government to notify a 5% GST rate for all fabrics, as recommended by the GST Council. The government notified rates of 6% for intra-state and 12% for inter-state supply of fabrics, with exceptions for certain types.
Key Issues
Whether the GST rate notified for fabrics by the government was in consonance with the GST Council's recommendations. Whether a statement by a Union Minister in Parliament could supersede a decision of the GST Council.
Sections Cited
Section 9(1) of the CGST Act, 2017, Section 5(1) of the IGST Act, 2017, Section 9(1) of the DGST Act, 2017
AI-generated summary — verify with the full judgment below
W.P.(C) 597/2019 $~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 15.09.2020 + MANUFACTURERS TRADERS ASSOCIATION & ANR.
… Petitioners Through: Mr. Prakash Shah, Advocate with Mr. Jasdeep Dhillon, Advocate.
versus UNION OF INDIA & ORS.
… Respondents Through: Mr. Jasmeet Singh, CGSC with Mr. Kirtiman Singh, CGSC and Mr. Srivtas Kaushal, Advocate for R-1. Mr. Amit Bansal, Senior Standing Counsel with Mr. Aman Rewaria and Ms. Vipasha Mishra, Advocates for R-2 to R-4. CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MR. JUSTICE SANJEEV NARULA
JUDGMENT
SANJEEV NARULA, J. (Oral)
CM APPL. 22639/2020
By way of this application, the Petitioners seek early hearing of the petition through video conferencing. Since no objection is raised on behalf of the Respondents, the application is allowed. Having regard to the fact that a short question is involved in the present petition, with the
The judgment continues below.
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