M/S Shree Padmini Bakers Private Limited vs. Union Of INDIA

Facts

M/s Shree Padmini Bakers Private Limited and its director, Shishir Agrawal, filed a writ petition before the Chhattisgarh High Court. They challenged a notification that sought to include 'Namkeens' under sub-heading 2106 90, which was previously covered under Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate). They also challenged certain circulars that classified extruded or expanded savoury or salted products under tariff item 1905 90 30, attracting an 18% GST rate. Furthermore, they sought to quash a show cause notice dated June 27, 2025, and its summary dated June 28, 2025, issued by the Directorate General of GST Intelligence. The petitioners also prayed for the opportunity to cross-examine individuals whose statements formed the basis of the show cause notice. However, during the proceedings, the petitioners sought to withdraw the petition.

Held

The petitioners, M/s Shree Padmini Bakers Private Limited and Shishir Agrawal, sought to withdraw their writ petition. They requested liberty to approach the appropriate forum for the redressal of their grievances. The Court, in light of this submission, dismissed the petition as withdrawn with the liberty as prayed for. Therefore, the Court did not decide on the merits of the challenges to the notification, circulars, or the show cause notice. No findings were made on the constitutionality or validity of the impugned provisions or the procedural fairness of the show cause notice. The issue of cross-examination was also not adjudicated upon. The operative direction was solely to dismiss the petition as withdrawn.

Key Issues

1. Whether Sr. No. 32C of Schedule II to Notification No. 01/2017-CT (Rate) dated 28/06/2017, as inserted by Notification No. 05/2024-CT (Rate) dated 08/10/2024, is ultra vires and unconstitutional to the extent it includes Namkeens falling under sub-heading 2106 90, and if it should be read down to exclude them from Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate) dated 28/06/2017? 2. Whether Circular No. 189/01/2023 dated 13/01/2023, Circular No. 200/12/2023 dated 23/05/2024, and Circular No. 11/10/2024 dated 01/08/2023 are ultra vires to Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate) dated 28/06/2017, to the extent they hold that all kinds of extruded or expanded products, savoury or salted, are classifiable under tariff item 1905 90 30 attracting GST at 18% up to 09/10/2024? 3. Whether the show cause notice dated 27.06.2025 and its summary dated 28.06.2025 are liable to be quashed and set aside? 4. Whether the petitioners are entitled to cross-examine the persons whose statements were relied upon for issuing the show cause notice? Petitioner's arguments: The petitioners argued that the impugned notification and circulars were ultra vires and unconstitutional. They contended that Namkeens falling under sub-heading 2106 90 should not be reclassified to attract a higher GST rate and that the classification under tariff item 1905 90 30 was incorrect. They also sought to quash the show cause notice and requested cross-examination rights. Respondent's arguments: The judgment does not record any specific arguments made by the respondents.