Response of the Union Minister for Finance to a query, cannot prevail over the decision of the GST Council, Therefore, there is no merit in the present petition and the same is accordingly dismissed.
Section 9 of the CGST Act, 2017 — Levy Of GST---Rate of Tax on fabrics falling under Chapters 50 to 63 — The petitioner, a society comprising of members engaged in the manufacture of fabrics, sought directions to the Central Government as well as the Government of NCT of Delhi to notify the GST rate of 5% for all varieties of fabrics falling under Chapters 50 to 63 of the Customs Tariff in furtherance of the recommendations made by the GST Council. The Petitioners submitted that three notifications no.s 1/2017-Central Tax (Rate) dated 28.06.2017, notifying the rate of central tax at 6% on Intra-State supply of fabrics; No.1/2017-Integrated Tax (Rate) dated 28.06.2017, notifying the rate of integrated tax at 12% on Inter-State supply of the fabrics and No.1/2017-State Tax (Rate) dated 30.06.2017, notifying the rate of state tax at 6% on Intra-State supply of fabrics made within the NCT of Delhi, are in conflict with the recommendations made by Respondent GST Council in its 15th meeting held on 03.06.2017. This Court on 27.08.2019 directed the GST Council to file reply within four weeks. The GST council in the 38th GST Council Meeting held on 18.12.2019, took up the matter and clarified the issue. The court observed that once the Respondent has made the recommendation of the tax rate, there is no ground to impugn the same.
Held that:-The Hon’ble High Court dismissed the petition as there is no merit in the present petition.
Response of the Union Minister for Finance to a query, cannot prevail over the decision of the GST Council, Therefore, there is no merit in the present petition and the same is accordingly dismissed.
Section 9 of the CGST Act, 2017 — Levy Of GST---Rate of Tax on fabrics falling under Chapters 50 to 63 — The petitioner, a society comprising of members engaged in the manufacture of fabrics, sought directions to the Central Government as well as the Government of NCT of Delhi to notify the GST rate of 5% for all varieties of fabrics falling under Chapters 50 to 63 of the Customs Tariff in furtherance of the recommendations made by the GST Council. The Petitioners submitted that three notifications no.s 1/2017-Central Tax (Rate) dated 28.06.2017, notifying the rate of central tax at 6% on Intra-State supply of fabrics; No.1/2017-Integrated Tax (Rate) dated 28.06.2017, notifying the rate of integrated tax at 12% on Inter-State supply of the fabrics and No.1/2017-State Tax (Rate) dated 30.06.2017, notifying the rate of state tax at 6% on Intra-State supply of fabrics made within the NCT of Delhi, are in conflict with the recommendations made by Respondent GST Council in its 15th meeting held on 03.06.2017. This Court on 27.08.2019 directed the GST Council to file reply within four weeks. The GST council in the 38th GST Council Meeting held on 18.12.2019, took up the matter and clarified the issue. The court observed that once the Respondent has made the recommendation of the tax rate, there is no ground to impugn the same.
Held that:-The Hon’ble High Court dismissed the petition as there is no merit in the present petition.