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TMI Blog2019 (10) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... the Council, preferably in the next meeting. A copy of our order should also be circulated so that the controversy is brought before the Council. List on 11.02.2020. - W.P.(C) 597/2019 & CM APPL. 2690-2691/2019 - - - Dated:- 11-10-2019 - MR. VIPIN SANGHI AND MR. SANJEEV NARULA JJ. Petitioner Through: Mr. Prakash Shah with Ms. Renuka Sahu, Mr. Jaideep Singh Dhillon, Mr. Prabhat K.C. and Mr. Shubham Narula, Advs. Respondent Through: Mr. Amit Bansal with Mr. Aman Rewaria and Ms. Vipasha Mishra, Advs. for R-2 to R-4. O R D E R On 27.08.2019, we had passed the following order: 1. During the course of arguments, the counsel for Petitioner relies upon the paragraph No. 9.8.10 of Minut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. List on 11.10.2019. In pursuance of our aforesaid order, an affidavit has been filed on behalf of respondent No. 3 by the Commissioner of Central Goods and Services Tax, Delhi East. In the said affidavit, the stand taken by respondent No. 3 is as follows: 4. That it is respectfully submitted that the GST rate structure on all goods of the textile value chain was deliberated at length during the 15th meeting of the GST council held on 03.06.2017. Based on the Pre-GST tax incidence, the council recommended 18% GST on Man-made filaments and yams. The pre-GST tax incidence on Man-made fabrics including embedded taxes was more than 11%. Therefore, a GST rate of 12% was recommended on fabrics by the Fitment Committee. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapters 56 to 59 from 12% to 5% in various meetings after the rollout of GST. All these requests for reduction were examined in detail by the GST Council and was rejected by the GST Council on the grounds that GST rate on technical textiles and specialised fabrics of chapters 56 to 59 shall attract GST at the rate of 12% as these fabrics attracted more than 13% tax incidence in pre-GS'T regime. However, the GST rate on very few items of these chapters were reduced by the GST Council to 5% without refund of ITC, as the trade requested that these fabrics are apparel fabrics, same as Man-madefabrics of chapter 50 to 55 attracting 5% GST and should not be given the GST rate of technical and industrial fabrics. These included corduroy fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held on 18/19.05.2017. From the said minutes, it appears that even in the 14th Meeting of the GST, it had taken a decision to tax all varieties of fabric at the rate of 5% instead of the proposed rate of 12% and not to allow cash refund of any accumulated credit of duty arising out of inversion of tax . Mr. Shah has also pointed out that the minutes of the 15th GST Council Meeting were approved in the subsequent meeting i.e. 16th GST Council Meeting, held on 11.06.2017 without any modification on fabrics. From what has been argued by Mr. Shah, we are inclined to agree with his submission that the decision of the GST Council was to subject all fabrics at the rate of 5% taxation and it appears that the position stated in the affida ..... X X X X Extracts X X X X X X X X Extracts X X X X
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