Rate of GST on Alcoholic liquor for human consumption—Whether the same falls within the meaning of food or food products –— The petitioner is a manufacturer of Indian Made Foreign liquor and is a franchisee of M/s.United Spirits Limited, Bangalore for manufacture of “McDowell” brand alcoholic beverages. An Assessment order has been passed by the Respondent for the Tax Period of 2017-2018, 2018-2019 & 2019-2020. The same has been challenged on the ground that the job work charges relatable to manufacture of Alcoholic liquor in view of Notification No.6/2021-Central Tax (Rate) dated 30.09.2021, at the rate of 18% as against 5% is illegal and contrary to law. The counsel for the petitioner stated that since liquor falls within the category of “Food and food products” under Chapter 22, as it was sought to be inserted at serial No.26 after clause ‘e’, the rate of tax payable is only 5%. The court observed that “alcoholic liquor for human consumption” does not constitute food or food product falling within Chapters 1 to 22, therefore, the petitioner is liable to pay tax at the rate of 18%. The notification No.6/2021 though published 30.09.2021, but this being clarificatory in nature, it has to be retrospective in operation.

Held that:- The Hon’ble High Court dismissed the writ Petition.