2022 (1) TMI 855 - HC - GST

Challenge to GST Classification for Animal Feed Supplement

The petitioner challenged the classification of a product under the GST Act and a specific circular, seeking clarification on its applicability to a ... Vires of Circular No. 163/19/2021-GST dated 06th October, 2021 - scheme of classification as provided under the Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017 and Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 - jurisdiction of the Executive - seeking direction to respondent No. 2 to clarify that para 8 does not apply to DDGS/AFS, when prepared and sold as animal feed supplement - classification of 'Dried Distillers Grain with Soluble - Classified under heading 2309 or under heading 2303? - HELD THAT:- Issue notice. List on 13th April, 2022 along with W.P.(C) 13322/2021. Issues: Challenge to the classification of a product under GST Act and Notification, seeking clarification on applicability of a circular.Analysis:Challenge to Circular Para 8:The petitioner filed a writ petition challenging para 8 of Circular No. 163/19/2021-GST dated 06th October, 2021, alleging it to be ultra vires the GST Act and the classification scheme under Notification No.1/2017-Central Tax (Rate) and Notification No. 2/2017-Central Tax (Rate). The petitioner sought a direction to respondent No. 2 to clarify that para 8 does not apply to DDGS/AFS when prepared and sold as animal feed supplement. The senior counsel for the petitioner contended that the circular wrongly classified 'Dried Distillers Grain with Soluble (DDGS)' under heading 2303 as 'distillery dreg and waste,' attracting a 5% GST rate, instead of under heading 2309 as an animal feed supplement wholly exempt from GST.Acceptance of Notice and Filing of Counter Affidavits:Upon hearing the arguments, notice was accepted by the learned counsels representing the respondents. They were granted permission to file their counter and reply affidavits within four weeks. Additionally, the petitioner was allowed to file a rejoinder affidavit if necessary before the next hearing scheduled for 13th April, 2022, along with another related case.This detailed analysis covers the issues raised in the legal judgment, focusing on the challenge to the circular's classification, the petitioner's contentions, and the procedural aspects of notice acceptance and affidavit filing by the respondents.