2026 (1) TMI 893 - HC - GST

Classification of repackaged rice bran oil under Customs Tariff: writ dismissed; appeal to Appellate Authority permitted

Dominant issue: proper classification of a repackaged rice bran oil product under the Customs Tariff. The HC held that classification disputes must be ... Classification of goods - rice bran oil - petitioner has purchased a rice bran oil on payment of 5% tax and had re-packed the same and sold as Deepam Oil (lamp oil) - to be classified under Customs Tariff Heading 1515 90 40 or under heading 1518 00 40? - HELD THAT:- The High Court is refrained from giving any opinion on the classification. Cases relating to classification has to be decided by the authorities under the hierarchy of Original Authority and Appellate Authority under the Act. This is to ensure that there is some uniformity in the classification, and that there are no conflicting views from different High Courts under Article 226 of the Constitution of India. That apart, several disputed questions of fact arises for consideration. Therefore, it is the fitness of things as they stand, it is advisable not to venture to give an opinion on the classification of the product in question. Therefore, this Writ Petition is liable to be dismissed. However liberty is given to the petitioner to file an appeal before the Appellate Authority within 30 days from the date of receipt of a copy of this order. Petition disposed off. Issues: Whether the writ petition challenging classification of packed rice bran oil (as classified by the original order) is maintainable for adjudication by the High Court on merits or should be dismissed as the classification dispute and factual questions be left to the statutory authorities and appellate mechanism under the GST enactments.Analysis: The petitioner challenged the original order confirming a demand, contending the product falls under tariff heading 1515 90 40 (edible rice bran oil) attracting lower tax, while the respondent contended the product was modified/inedible and correctly classifiable under heading 1518 00 40 attracting higher tax. The Court noted that classification disputes require uniformity and should be determined by the statutory hierarchy of original and appellate authorities under the GST enactments. Several disputed questions of fact are present and the record included laboratory testing with differing implications. The Court therefore refrained from expressing any opinion on classification and emphasized that the Appellate Authority under the GST framework is the appropriate forum to decide the classification on merits.Conclusion: The writ petition is dismissed and the petitioner is granted liberty to prefer an appeal before the Appellate Authority within 30 days from receipt of this order; the Appellate Authority shall decide the appeal on merits without being influenced by observations in this order.