Pushp Henna Private Limited vs. Union Of INDIA
Facts
The petitioner, Pushp Henna Private Limited, filed a writ petition challenging an action by the revenue authorities concerning the Goods and Services Tax (GST) applicable to 'Henna Powder' and 'Henna Leaves'. The dispute revolved around the correct GST rate. Subsequent to the filing of the petition, a clarification was issued by the GST Council in its 45th meeting held on September 17, 2021, communicated on October 6, 2021. This clarification established that the applicable GST rate for 'Henna Powder' and 'Henna Leaves' would be 5%. The petitioner stated that a refund claim had been filed based on this clarification and was pending. The respondents did not dispute the factual position regarding the applicable rate as per the clarification.
Held
The Court allowed the application for disposal of the writ petition in terms of the clarificatory communication dated October 6, 2021. The Court held that the petitioner would be liable for payment of GST at the rate of 5% in respect of 'Henna Powder' and 'Henna Leaves', as per the aforementioned clarification. The Court further directed that the petitioner's claim for refund, which was pending before the competent authority, shall also be considered and decided. Additionally, the Court ordered the forthwith release of all documents seized during the course of the investigation. The ratio decidendi is that subsequent clarifications issued by the GST Council, which are accepted by the revenue, should be applied retrospectively to resolve disputes regarding tax rates and that seized documents should be released upon resolution of the dispute.
Key Issues
1. What is the correct GST rate applicable to 'Henna Powder' and 'Henna Leaves' under the Central Goods and Services Tax Act, 2017 (CGST Act) and the Rajasthan Goods and Services Tax Act, 2017 (RGST Act)? Petitioner's Contention: The petitioner argued that based on the clarification issued by the GST Council, the applicable GST rate for 'Henna Powder' and 'Henna Leaves' should be 5%. They further contended that a refund claim had been filed and was pending consideration. Revenue's Contention: The respondents did not dispute the factual position regarding the rate of GST as per the clarificatory communication dated October 6, 2021. They implicitly accepted the 5% rate.
Sections Cited
CGST Act, RGST Act
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 10272/2020 Pushp Henna Private Limited, Through Its Director Shri Chandra Prakash Gehlot S/o Shri Laxman Ram Gehlot Aged About 39 Years, Resident Of Near Kushal Krishi Farm Sojat Roag Marg, Sojat City District Pali, Rajasthan 306 104 ----Petitioner Versus
Union Of India, Through Its Principal Secretary, Ministry Of Finance, Department Of Revenue, North-Block, New Delhi.
The Chief Commissioner, Central Goods And Service Tax And Central Excise, Jaipur Zone, Jaipur, Rajasthan.
The Commissioner, Central Goods And Service Tax (Cgst), Jodhpur.
The Assistant Commissioner, Central Goods And Servvice Tax, Division-D, Ground Floor, Tdm Office, Campus Bsnl, Mahaveer Nagar, Pali- 306 401
The Director General, Gst Intelligence Jaipur Zone, C-62, Sarojni Marg, C Scheme, Jaipur.
The Superintendent, Cgst, Range Xviii, Pali. ----Respondents For Petitioner(s) : Mr. Manoj Bhandari, Sr. Advocate assisted by Mr. Mohit Choudhary. For Respondent(s) : Mr. Rajvendra Saraswat. HON'BLE THE CHIEF JUSTICE MR. S. S. SHINDE HON'BLE MR. JUSTICE SANDEEP MEHTA Order 27/06/2022 Heard on application for dispos
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