The High Court held that the impugned Press Release by the ...

Govt press release directing classification of hand sanitizers as disinfectants invalid; judiciary's domain to decide independently.

Case Laws     GST

November 12, 2024

The High Court held that the impugned Press Release by the Ministry of Finance, purporting to direct judicial and quasi-judicial authorities to classify all alcohol-based hand sanitizers as "disinfectants" attracting 18% GST rate, is invalid. The Court ruled that the executive cannot transgress on the functions within the exclusive province of judicial or quasi-judicial authorities. The issue of product classification falls within the domain of judicial and quasi-judicial bodies created under the Act, who must exercise their powers independently without executive interference. The Press Release virtually expressed a firm view on classifying hand sanitizers as "disinfectants" rather than "medicaments," urging authorities to levy 18% tax, thereby influencing their independent decision-making. Consequently, the Court set aside the Press Release to enable unbiased adjudication by judicial and quasi-judicial authorities on product classification and applicable tax rates.

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