2025 (10) TMI 913 - HC - GST

PILs seeking petrol and diesel to be brought under GST dismissed as non-justiciable policy matter for GST Council

HC dismissed PILs seeking inclusion of petrol and diesel under GST, holding that fixing a date is a policy matter for the GST Council and not a ... PIL substantially seeking the relief of including the petrol and diesel under the GST regime so as to achieve a harmonized national market as contemplated under Article 279 (A) of the Constitution of India - HELD THAT:- Fixing a date is a prerogative of GST Council. This Court cannot issue a writ of mandamus inasmuch as there is no right conferred upon any citizen to command the GST Council to fix a date for inclusion of the petroleum products under the GST regime. As the matter truly falls under the policy of the GST Council, this is not a matter within the domain of the Court to interfere by issuing a writ of mandamus. The judgment relied upon by the learned counsel in Aeltemesh Rein [1988 (8) TMI 424 - SUPREME COURT] in fact relates to the right of Advocates to practice in accordance with the provisions of the Advocates Act, 1961, which is a right acknowledged under the statutory provisions and nevertheless such a right is also qualified for acknowledgment under Article 19 of the Constitution of India. The matter completely falls within the domain of the GST Council’s policy, it is for them to decide whether to fix a date or not to fix a date. We have only considered this aspect from the perspective of the court interfering in the matter through a writ of mandamus directing the GST Council to take up the matter and take a decision. Thus, declining the jurisdiction, these writ petitions are dismissed. ISSUES PRESENTED AND CONSIDERED 1. Whether petroleum products (petrol and diesel) ought to be included within the Goods and Services Tax (GST) regime to achieve a harmonized national market under Article 279A of the Constitution. 2. Whether the Court can issue a writ of mandamus directing the GST Council to fix a date for bringing specified petroleum products within the GST regime. 3. Whether the subject matter of inclusion of petroleum products in GST is justiciable or falls exclusively within the policy domain of the GST Council such that judicial interference by way of mandamus is inappropriate. ISSUE-WISE DETAILED ANALYSIS Issue 1: Inclusion of petroleum products within the GST regime (legal framework and scope) Legal framework: Article 279A of the Constitution establishes the GST Council and empowers it to make recommendations, including matters of tax policy and the date for implementation of items under the GST. The decision to include commodities within the GST involves assessment of fiscal implications, administrative considerations and policy choices entrusted to the Council. Precedent treatment: The respondents referred to various Apex Court and High Court judgments asserting that petroleum products may be kept outside GST; the Court considered such authorities but did not treat them as mandating inclusion. Aeltemesh Rein (cited by petitioner) concerned statutory rights under the Advocates Act and was distinguished on facts and legal character. Interpretation and reasoning: The Court observed that bringing petroleum products under GST implicates significant revenue consequences and requires deliberation by the political/administrative body charged with tax policy. Article 279A contemplates the Council's role in fixing dates and addressing inclusion; the determination whether to include petroleum products is therefore a policy decision for the Council, informed by fiscal and practical considerations. Ratio vs. Obiter: Ratio - The inclusion of petroleum products under GST is a policy matter for the GST Council under Article 279A; judicial compulsion to include such products is not warranted merely because harmonization objectives exist. Obiter - Observations on comparative merits of inclusion (e.g., pandemic timing or revenue implications) are contextual and deliberative rather than binding legal principles. Conclusions: The Court concluded that the question of whether petroleum products should be brought within GST is for the GST Council to decide in exercise of its constitutional/policy mandate; the Court will not direct substantive inclusion. Issue 2: Power to issue mandamus directing the GST Council to fix a date for inclusion Legal framework: Writ jurisdiction under the Constitution allows supervisory relief where a legal right is infringed or a statutory duty is peremptory. However, mandamus is inappropriate where the subject matter is a matter of policy or discretionary decision-making conferred on a constitutional/legislative body. Precedent treatment: The petitioner relied on Aeltemesh Rein (mandamus directing implementation of a statutory provision). The Court distinguished that precedent because it enforced a statutory right ( Advocates Act ) distinct from the policy discretion vested in the GST Council. Other authorities referred to by respondents were relied upon to underscore limits of judicial interference in policy. Interpretation and reasoning: The Court found no legal right in citizens to compel the GST Council to fix a date; Article 279A confers a prerogative on the Council to recommend and fix dates, and that prerogative includes deliberative and policy choices. A mandamus would improperly substitute judicial judgment for Council policy-making. The Court emphasized the absence of any statutory or constitutional obligation that would convert the Council's discretion into a ministerial duty enforceable by mandamus. Ratio vs. Obiter: Ratio - A writ of mandamus cannot be issued to compel the GST Council to fix a date for inclusion of petroleum products under GST where no legal right to such fixation exists and the matter is quintessentially policy-oriented. Obiter - The Court's remark that certain pandemic-related concerns or revenue implications were not persuasive grounds as presented by the Council is contextual and not a binding principle. Conclusions: The Court declined to issue mandamus; it held that there is no enforceable right empowering the Court to command the GST Council to fix a date for inclusion of petroleum products in GST. Issue 3: Justiciability and separation between judicial review and policy domain of the GST Council Legal framework: Constitutional separation of powers and doctrines of justiciability confine courts from encroaching into political or policy decisions entrusted to specialized constitutional bodies, absent violation of law, mala fide conduct, or failure to exercise statutory duty. Article 279A situates key tax-policy decisions within the GST Council's remit. Precedent treatment: The Court treated precedents concerning enforceable statutory rights as distinguishable from cases where the subject matter is discretionary policy. It relied on the principle that courts may not direct policy outcomes where a constitutional body must exercise judgment. Interpretation and reasoning: The Court assessed the petitions and interim orders and concluded that the dispute concerns policy determination by the Council, including considerations of revenue impact and timing (e.g., pandemic conditions). Judicial interference by mandamus would amount to judicial usurpation of policy domain. The Court confined its role to judicial review of legality, not to directing substantive policy outcomes; absent a legal duty violated, the matter is non-justiciable in the sense of commanding the Council's decision. Ratio vs. Obiter: Ratio - Inclusion of petroleum products and the fixing of implementation dates fall within the Council's policy domain and are ordinarily non-justiciable for direction by judicial mandamus. Obiter - The Court's express dissatisfaction with the Council's initially stated reasons (as reflected in the interim order) signals expectation of genuine deliberation but does not create a judicial power to dictate outcomes. Conclusions: The Court dismissed the writ petitions, declining jurisdiction to interfere with the GST Council's policy decision-making, and emphasized that the Council alone must decide whether and when to bring petroleum products into the GST regime. Cross-references and final positioning Cross-reference: Issues 1-3 are interrelated: the constitutional placement of tax-policy decision-making under Article 279A (Issue 1) informs the non-justiciability and discretionary nature (Issue 3), which in turn precludes issuance of mandamus (Issue 2). The Court distinguished precedents enforcing statutory rights from cases raising policy discretion, thereby limiting judicial compulsion.