2022 (9) TMI 1046 - HC - GST

Classification of goods - rate of GST - Mango Pulp - classifiable under Chapter Heading 0804 50 40 or not - taxable at 18% or not - HELD THAT - It is very clear now that on the basis of recommendation of GST Council in its 22nd meeting, the GST rate on Mangoes sliced, dried falling under heading 0804 was reduced from 12% to 5% while GST rate on all forms of dried mangoes (other than sliced and dried mangoes) falling under heading 0804, including mango pulp, was always meant to be at the rate of 12%. Therefore, the petitioner is liable to pay GST on Mango pulp @ 12%. The orders passed by the Appellate Authority for Advance Ruling imposing GST in respect of mangopulp @ 18% is incorrect and it is made clear that the petitioner is liable to pay GST in respect of Mango pulp @ 12%. The Writ Petition is disposed of.

Summary

Issues involved:
1. Classification of goods for GST
2. Applicability of GST rate on mango pulp

Analysis:
1. The petitioner filed a writ petition seeking a Writ of Mandamus directing the authorities to classify the goods manufactured by the petitioner under Chapter Heading 0804 50 40 and exempt from GST as per a specific notification. The court had earlier directed the authorities not to take coercive steps for GST recovery for past transactions and had directed the petitioner to pay GST for future transactions. The main issue was whether GST should be charged on 'Mango Pulp' at 18%.

2. The petitioner had approached the Authority For Advance Ruling, where it was held that 'Mango pulp/puree' falls under a specific entry, attracting GST at 18%. The petitioner appealed this decision, and the Appellate Authority for Advance Ruling modified the order, confirming that 'Mango Pulp/Puree' is classifiable under a different tariff item and chargeable to GST at 18%. However, a circular issued by the Government of India clarified that mango pulp falls under a category attracting GST at 12%. Based on this clarification, the court held that the petitioner is liable to pay GST on Mango pulp at 12%, not 18%.

3. The court noted the recommendation of the GST Council, which reduced the GST rate on certain forms of mangoes, including sliced and dried mangoes, to 5%. However, it was clarified that all other forms of dried mangoes, including mango pulp, attract GST at the rate of 12%. Therefore, the court concluded that the petitioner should pay GST on Mango pulp at 12%, as per the clarification provided by the Government circular. The orders imposing GST at 18% were deemed incorrect, and the petitioner was directed to pay GST at the revised rate of 12%.

4. Consequently, the writ petition was disposed of, with no order as to costs. Any pending miscellaneous petitions in the case were to be closed as well. The judgment clarified the correct GST rate applicable to mango pulp based on the specific classification and notification, resolving the dispute in favor of the revised GST rate of 12% as clarified by the Government circular.