M/S. Prem Mehandi Centre vs. The Union Of INDIA
Facts
The petitioner, M/s. Prem Mehandi Centre, through its proprietor, approached the Rajasthan High Court via a writ petition challenging an action or order related to GST. The dispute concerned the applicable GST rate on 'Henna Powder' and 'Henna Leaves'. Following a clarification issued by the GST Council in its 45th Meeting on September 17, 2021, and communicated on October 6, 2021, the parties agreed that the applicable GST rate for these goods would be 5%. The petitioner stated that a refund claim had been filed and was pending consideration by the competent authority. The respondents did not dispute the factual position regarding the GST rate as per the clarification.
Held
The Court held that the GST rate applicable to 'Henna Powder' and 'Henna Leaves' is 5%, as per the clarificatory communication dated October 6, 2021, which was based on the recommendations of the 45th GST Council Meeting. The reasoning was based on the consensus reached by both parties regarding the rate. The Court allowed the application for disposal of the writ petition in terms of this clarification. The operative directions included confirming that the petitioner is liable for GST at 5% on 'Henna Powder' and 'Henna Leaves' as per the communication. Furthermore, the Court directed that the petitioner's pending refund claim shall also be considered and decided by the competent authority.
Key Issues
1. What is the correct GST rate applicable to 'Henna Powder' and 'Henna Leaves' under the Goods and Services Tax regime? (Question of law, concerning classification and rate determination under GST law). Petitioner's contention: The petitioner argued that based on the clarification dated October 6, 2021, stemming from the 45th GST Council Meeting, the applicable GST rate for 'Henna Powder' and 'Henna Leaves' is 5%. They relied on this communication to establish the correct rate. Revenue's contention: The respondents, represented by the Union of India and various GST authorities, did not dispute the factual position regarding the GST rate as clarified by the communication dated October 6, 2021. They implicitly accepted the 5% rate.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 4099/2021 M/s. Prem Mehandi Centre, Through Its Proprietor Shri Chatura Ram Gehlot S/o Shri Nema Ram, Aged About 48 Years, Resident Of House No. 292, Bera Bherusagar, Pachunda Kala, Bagri Nagar, Pali, Rajasthan. ----Petitioner Versus
The 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 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. Adv. assisted by Mr. Mohit Choudhary For Respondent(s) : Mr. Rajvendra Sarswat HON'BLE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MADAN GOPAL VYAS Order 18/05/2022 Heard on application for disposal of the petition. In view of the communication dated 06.10.2021, whereby the clarification regarding GST Rate and Classification of Goods based on re
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