2023 (11) TMI 356 - HC - GST

100% EOU - Interpretation of the notifications - Classification of mango pulp - to be classified under HSM 08.04 or not - HELD THAT - RULE returnable on 01.12.2023. Ms. Hetvi Sancheti learned Senior Standing Counsel waives service of notice of Rule on behalf of all respondents in Special Civil Application No. 21706 of 2023 and for respondent no. 3 in Special Civil Application No. 21700 of 2023.

Summary

Issues involved: Interpretation of notifications regarding tax rates on Mango Pulp in the GST regime.

Summary:
The petitioners, engaged in the supply of Mango Pulp as a 100% export-oriented unit, argue that Mango Pulp falls under HSM 08.04 in Chapter 8 of the HSM. They refer to the exemption notification dated 28.06.2017, which exempted certain fresh fruits from intrastate tax, including Mangoes. Subsequent notifications introduced a 12% levy and reclassified 'Dried Mangoes.' Following the 22nd GST Council Meeting, Mango Sliced Dried was placed in a 5% tax slab. The petitioners have been paying tax at 5% based on these notifications. However, a recent notification dated 13.07.2022 demands tax at 12%, creating a retrospective tax liability issue for the petitioners. They argue that a clarification cannot amend the entry in question.

In response, the Senior Standing Counsel argues that a similar issue was addressed in a decision by the Andhra Pradesh High Court, where an enhanced tax rate was upheld for the relevant period. The petition is disposed of, and the petitioners are directed to pay the enhanced tax rate. The Rule is returnable on 01.12.2023, with service waived for some respondents and permitted through E-mail for others.