Notice issued: Whether GST Council has the authority to change the classification of the product

Last updated: 14 September 2023
Quick Summary
The Allahabad High Court has placed a stay on a show cause notice concerning the GST classification of "flavoured and coated elaichi". The petitioner, Dharampal Satyapal Limited, was reclassified from Chapter 20 to Chapter 21 by the GST Council, increasing the GST rate from 12% to 18%. The court's interim order requires a deposit of INR 10 crores and a bank guarantee for the balance amount, preventing the revenue department from enforcing the new classification or issuing further demands without court permission.

Court :
Allahabad High Court

Brief :
The Hon'ble Allahabad High Court in M/s. Dharampal Satyapal Limited v. Union of India [Writ Tax No. 979 of 2023 dated August 21, 2023] granted the stay on show cause notice provided the deposits INR 10 Crores with the Revenue Department in a separate account within three weeks and submits a bank guarantee of the balance amount.

Citation :
Writ Tax No. 979 of 2023 dated August 21, 2023

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Bimal Jain
Published in GST
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