M/S Shree Balajee Bakeries Private Limited vs. Union Of INDIA

Facts

M/s Shree Balajee Bakeries Private Limited and its director, Shishir Agrawal, filed a writ petition before the High Court of Chhattisgarh. The petition challenged the classification of 'Namkeens' for GST purposes, arguing they should attract GST at 12% under sub-heading 2106 90, as per Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate). They sought to declare certain notifications and circulars ultra vires and unconstitutional to the extent they classified extruded or expanded products, savoury or salted, under tariff item 1905 90 30, attracting 18% GST. The petitioners also 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.

Held

The Court did not delve into the merits of the case. The petitioners, through their counsel, submitted that the present petition be dismissed as withdrawn with liberty to approach the appropriate forum for redressal of their grievances. The Court accepted this submission. Therefore, no specific findings were made on the classification of 'Namkeens' or the validity of the impugned notifications and circulars. The Court did not decide the questions of law or mixed law and fact presented in the petition. The operative direction was to dismiss the petition as withdrawn with liberty to the petitioners to approach the appropriate forum.

Key Issues

1. Whether 'Namkeens' should be classified under sub-heading 2106 90, attracting GST at 12% as per Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate) dated June 28, 2017? (Question of law) 2. Whether Sr. No. 32C of Schedule II to Notification No. 01/2017-CT (Rate) dated June 28, 2017, as inserted by Notification No. 05/2024-CT (Rate) dated October 8, 2024, is ultra vires and unconstitutional to the extent it includes 'Namkeens' falling under sub-heading 2106 90 at Sr. No. 46 of Schedule II? (Question of law) 3. Whether Circular No. 189/01/2023 dated January 13, 2023, Circular No. 200/12/2023 dated August 1, 2023, and Circular No. 235/29/2024 dated October 11, 2024, are ultra vires to Sr. No. 46 of Schedule II to Notification No. 01/2017-CT (Rate) dated June 28, 2017, by holding that all kinds of extruded or expanded products, savoury or salted, are classifiable under tariff item 1905 90 30, attracting 18% GST? (Question of law) Petitioner's arguments: The petitioners contended that 'Namkeens' should fall under sub-heading 2106 90, attracting 12% GST. They argued that the impugned notifications and circulars were ultra vires and unconstitutional as they sought to classify 'Namkeens' under a different tariff item attracting a higher GST rate, thereby contradicting the existing classification. They sought to strike down these provisions and quash the show cause notice. Revenue's arguments: The judgment does not record any specific arguments made by the respondents.