M/S Tata Consumer Product LTD vs. Union Of INDIA And Ors.

Held

The Court held that the writ application had no merit. This finding was based on the judicial notice taken of the Supreme Court's judgment in Union of India & Ors. Vs. VKC Footsteps India Pvt. Ltd., which had already upheld the constitutional validity of Rule 89(5) of the CGST Rules, 2017. The reasoning was that a High Court is bound by the decisions of the Supreme Court. Therefore, the issue raised by the petitioner regarding the constitutional validity of the said rule had already been authoritatively decided by the apex court. The ratio decidendi is that a High Court cannot entertain a challenge to a provision whose constitutional validity has been affirmed by the Supreme Court. The operative direction was to dismiss the writ application.

Facts

The petitioner, M/s. TATA Consumer Products Limited, filed a writ application challenging the constitutional validity of Rule 89(5) of the CGST Rules, 2017. The respondents were the Union of India and others, including the State. The writ application was filed in the High Court. The core of the dispute revolves around the interpretation and application of this specific rule within the Goods and Services Tax regime. The procedural history indicates that the matter reached the High Court for adjudication.

Key Issues

1. Whether Rule 89(5) of the CGST Rules, 2017, is constitutionally valid? This question of law turns on the interpretation of the CGST Act, 2017, and the Constitution of India. The petitioner argued that the rule is unconstitutional. The respondents, Union of India and the State, contended that the rule is valid. The Court noted that the Hon'ble Supreme Court had already upheld the constitutional validity of Rule 89(5) of the CGST Rules, 2017, in the case of Union of India & Ors. Vs. VKC Footsteps India Pvt. Ltd. (Civil Appeal No.4810 of 2021) by its judgment dated September 13, 2021. The Court took judicial notice of this Supreme Court decision.