M/S Ramesh Metal Industries Kisrol vs. Union Of INDIA And 2 Others
Held
The Court did not decide the substantive issues regarding the classification of brass Pooja and Deepak items or the applicable tax rate. The judgment records that the writ petition was taken up for hearing twice, and on both occasions, no one appeared for the petitioner. Consequently, the Court dismissed the writ petition for non-prosecution. The reasoning for dismissal is solely based on the petitioner's failure to appear and prosecute their case. No finding was made on the merits of the classification dispute or the tax rate. The operative direction was the dismissal of the petition.
Facts
The petitioner, M/S Ramesh Metal Industries Kisrol, Moradabad, filed a writ petition challenging the classification of certain brass items, specifically Pooja and Deepak, under Tariff Code-7418, which they contended were being taxed at 18%. The petitioner argued that these items should be classified under Code-7419. The State counsel informed the Court that the GST Council, in a meeting on July 21, 2018, issued notification 21/2018 on July 26, 2018, which reduced the tax rate on handicraft goods, including articles of brass, to 12%. The writ petition was listed for hearing on two occasions, but the petitioner did not appear on either date.
Key Issues
1. Whether the classification of brass Pooja and Deepak items under Tariff Code-7418, leading to an 18% tax rate, is legally sustainable, or if they should be classified under Code-7419. This issue hinges on the correct interpretation and application of the relevant GST tariff codes. Petitioner's contention: The petitioner argued for a reclassification of the brass items under Tariff Code-7419, implying a challenge to the current classification under Code-7418 and the associated 18% tax rate. Revenue's contention: The State counsel informed the Court about GST Council notification 21/2018 dated July 26, 2018, which reduced the tax rate on handicraft goods, including articles of brass, to 12%. This suggests the State's position was that the items, if classified as handicrafts, would attract a lower rate of 12%, potentially resolving the petitioner's grievance regarding the 18% rate, though it does not directly address the classification dispute itself.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Issue raised in the present petition is regarding rate of tax on Brass, Pooja and Deepak. The prayer is that these items are being kept under Tariff Code-7418 instead of Code-7419 and these are now taxable @ 18%.
Learned counsel for the State submitted that in the meeting of the GST Council held on July 21, 2018, the Central Government has issued notification 21/2018 on July 26, 2018, in which the rate of tax on handicraft goods, namely, articles of brass, copper/copper alloys, electro plated with nickel/Silver has been decreased to 12%.
The writ petition was taken up for hearing twice. None appeared for the petitioner.
The present writ petition is dismissed for non prosecution. Allahabad 05.01.2023 Deepak/Ishan Whether the order is speaking : Yes/No Whether the order is reportable : Yes/No Chief Justice's Court Serial No. 3010 WRIT TAX No. - 880 of 2018
v/s Through :- Mr. Ankur Agarwal, Standing Counsel CORAM : HON'BLE RAJESH BINDAL, CHIEF JUSTICE
HON'BLE J.J. MUNIR, JUDGE (J.J. Munir) Judge (Rajesh Bindal) Chief Justice M/S Ramesh Metal Industries Kisrol, Moradab
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