Court Grants Petitioner's Tax Exemption Request, Deems GST Section Discriminatory

The court granted the petitioner's request to quash the order of the Gujarat Appellate Authority for Advance Ruling and declared their products as falling under Entry No.96 of the exemption notification, entitling them to tax exemption under the GST Acts. Additionally, Section 103(1)(b) of the GST Acts was deemed discriminatory and arbitrary, violating constitutional rights. The court also ruled that advance ruling appellate orders are binding on authorities subordinate to the Chief Commissioners of CGST and SGST. Interim relief was granted to restrain respondents from taking coercive actions pending final resolution, with further relief left to the court's discretion in the interest of justice.

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Issues Involved:
Challenge to provision of Section 103(1)(b) of GST Act and order by Gujarat Appellate Authority for Advance Ruling; Classification of petitioner's products under Entry No.96 of exemption notification; Declaration of Section 103(1)(b) as discriminatory and arbitrary; Binding nature of advance ruling appellate orders; Restraining respondents from initiating proceedings against petitioner; Granting interim relief; Seeking further relief in the interest of justice.

Analysis:

A. The petition challenges the provision of Section 103(1)(b) of the GST Act and the order passed by the Gujarat Appellate Authority for Advance Ruling. The petitioner seeks a writ to quash the order dated 18.8.2021 and another order dated 17.9.2020. The challenge is based on the classification of the petitioner's products, papad of different shapes and sizes, under Entry No.96 of the exemption notification, aiming for tax exemption under the GST Acts.

B. The petitioner requests the court to declare that their products fall under Entry No.96 of the exemption notification, dated 28.6.2017, and should be exempt from tax under the GST Acts. This issue revolves around the classification of the petitioner's products for tax purposes.

C. Another challenge presented is to declare Section 103(1)(b) of the GST Acts as discriminatory, arbitrary, and in violation of Articles 14 and 19(1)(g) of the Constitution of India. The petitioner argues that this provision is grossly discriminatory and manifestly arbitrary, impacting their rights under the Constitution.

D. The petitioner seeks a declaration that advance ruling appellate orders concerning other taxable persons with similar facts are binding on all authorities subordinate to the Chief Commissioners of CGST and SGST. This issue pertains to the binding nature of advance ruling appellate orders on relevant authorities.

E. Pending the notice, admission, and final hearing of the petition, the petitioner requests the court to restrain the respondents from initiating any proceedings or coercive actions related to the subject matter of the petition. This issue addresses the immediate relief sought by the petitioner to prevent any adverse actions during the legal process.

F. The petitioner also requests ex parte ad interim relief in line with the aforementioned request for restraining the respondents from taking any coercive actions. This interim relief is sought to protect the petitioner's interests until the final resolution of the case.

G. Lastly, the petitioner seeks further relief deemed fit by the court in the interest of justice. This catch-all request leaves room for the court to grant additional relief as appropriate based on the circumstances of the case, ensuring justice is served.

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