Balaji General Store vs. The State Of Telangana

WP/22897/2021HC TelanganaGSTCNR HBHC01037109202130 November 2021Bench: SATISH CHANDRA SHARMA,A.RAJASHEKER REDDY210 pages
AI SummaryDismissed

Held

The Court held that tobacco products fall within the definition of 'food' as enumerated in Section 3(i) of the FSSA. Consequently, Section 89 of the FSSA, which grants overriding effect to its provisions over all other food-related laws, would make the FSSA hold the field. The Court found that the legislative objects of the Prevention of Food Adulteration (PFA) Rules and the FSSA were not in conflict, and the provisions and directions issued thereunder could not be considered inapplicable merely because a license for the manufacture of gutka was contemplated under the COTPA Act, 2003. The Court noted that the FSSA was legislated for the protection of adulteration, whereas the COTPA Act, 2003, was intended to prohibit advertising and regulate the trade of tobacco products, and thus, there was no conflict between the legislative objects of the two enactments. The Court also referred to a Division Bench of the Bombay High Court that had dealt with similar issues. The Court concluded that the restrictions imposed by the notification were in larger public interest, aimed at saving human lives and preventing diseases like cancer, and constituted reasonable restrictions that did not offend the right to carry on trade guaranteed under the Constitution. Therefore, the Court found no reason to interfere with the impugned notification.

Facts

The petitioners, including Sri Kamadhenu Traders and Damodar Jagannath Malpani, filed writ petitions challenging Notification No. 505/FSS-1/2021, dated 06.01.2021, issued by the Commissioner of Food Safety, Telangana. The petitioners argued that this notification was illegal, arbitrary, unconstitutional, and ultra vires the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA Act, 2003). They contended it violated principles of natural justice and Articles 14, 19, and 21 of the Constitution of India. The petitions sought to set aside the notification and prevent authorities from interfering with their trade and business in products covered by it. The State of Telangana filed an interlocutory application seeking to vacate the interim order granted in favour of the petitioners.

Key Issues

1. Whether Notification No. 505/FSS-1/2021, issued by the Commissioner of Food Safety, Telangana, is illegal, arbitrary, unconstitutional, and ultra vires the COTPA Act, 2003, in violation of Articles 14, 19, and 21 of the Constitution of India and principles of natural justice. Petitioner's arguments: The petitioners contended that the impugned notification was beyond the scope of the Food Safety and Standards Act, 2006 (FSSA) and conflicted with the COTPA Act, 2003, which specifically governs tobacco products. They argued that the FSSA was intended for food adulteration, while COTPA Act, 2003, dealt with tobacco products. They also argued that the notification imposed unreasonable restrictions on their right to trade, violating Article 19(1)(g) of the Constitution. Respondents' arguments: The respondents argued that tobacco products fall within the definition of 'food' under Section 3(i) of the FSSA. They relied on Section 89 of the FSSA, which gives overriding effect to its provisions over other food-related laws. They further argued that the restrictions imposed by the notification were in larger public interest, aimed at protecting human lives from diseases caused by tobacco consumption, and constituted reasonable restrictions under Article 19(6) of the Constitution.

Sections Cited

Section 3(i), Section 89, Article 14, Article 19, Article 19(1)(g), Article 19(6), Article 21

AI-generated summary — verify with the full judgment below

HIGH COURT FOR THE STATE OF TELANGANA (Special Original Jurisdiction) TUESDAY, THE THIRTIETH DAY OF NOVEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE THE CHIEF JUSTICE SATISH CHANDRA SHARMA AND THE HON'BLE SRI JUSTICE A.RAJASHEKER REODY WP. N os. 1 9928, 20022, 21 27 T, 21 31 4, 21 344, 21 ZS2, 21 362, 21 S2Z, 21545, 21547,21 555, 21 569, 21831, 21886, 21899, 21914, 2'tg3g, 22297 , 2231 0, 22322, 22325, 22330, 22333, 223 49, 2236s, 2237 6, 22388, 2239 O, 22392, 2241 6. 22423, 2242s, 22432, 22447, 2248 o, 22482, 22498, 22s07, 22560, 22569, 2257 3, 22586, 2263 5, 227 0 8, 227 28, 227 32, 227 62, 227 6 4, 227 8 5, 2280 8, 228 46, 22850, 22868, 2285 5, 22897, 2289 8, 22930, 229 4 1, 22969, 22983,23000, 23036, 23058, 23069, 23128, 23132, 23182, 23186, 23209, 23257, 23284, 23286, 23292, 23321, 2 3 3 50, 2 33 58, 23 47 6, 234s O, 23 528, 23 599, 23629, 23633, 2380 2, 24088, 2427 3, 2428 5, 24467, 2447 s, 24591, 24698, 24927 , 24929, 25049, 25073, 25074, 25083, 25114,, 25't24, 25131, 25203, 25206, 25267, 25272, 25305, 2s472, 2ss58, 25702, 2s713, 25740, 25898,2590s, 25933, 25984, 26196, 26368, 26467 , 26s70, 26618, 267 38, 2697 2, 27 0 44, 27 1 38, 27 27 9, 27 364, 27 406, 27 459, 28

The judgment continues below.

Read the full judgment

A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.