The Single Bench of Justice MD. Nizamuddin of the Calcutta High Court in the case of M/S Harsh Polyfabric Pvt Ltd Vs Union of India & Ors opined that the task of classifying a product to determine under which classification list of the Customs Tariff Act such product falls should not be left to the Writ Jurisdiction under Article 226 of the Indian Constitution, as it requires expertise in the relevant scientific and technical field to conduct the necessary scientific and technical analysis.
Brief Facts:
The present writ petition has been filed to challenge the order passed by the Appellate Authority under the relevant provision of the West Bengal Goods and Services Tax Act and Rules, 2017, vide which the claims of the Petitioner that its product falls under Chapter 63 of the Customs Tariff Act and return of 5% of GST on its sale were rejected.
The Appellate Authority held that the bed sheet manufactured by the Petitioner ought to be considered in Chapter 56 03 at par with “Non-Woven Fabric” and has to be taxed at 12%.
Observations of the Court:
The Hon’ble Court opined that the task of classifying a product to determine under which classification list of the Customs Tariff Act such product falls should not be left to the Writ Jurisdiction under Article 226 of the Indian Constitution, as it requires expertise in the relevant scientific and technical field to conduct the necessary scientific and technical analysis.
It was noted that the Court under the Article 226 of the Constitution of India should not scrutinize the decision itself, by playing the role of an Appellate Authority over such order of the authority and substitute the findings of authority by reappreciating the evidence and material and more particularly the nature of a case like this.
It was further added that a conclusion and declaration regarding which heading of the classification list the product in question will fall can only be made after taking into account the aforementioned scientific and technical aspects. Only those with scientific and technical expertise can provide an opinion regarding the nature of the material used and the manufacturing method involved in producing the articles in question.
The Decision of the Court:
Based on the aforementioned observations, the writ petition was accordingly, dismissed.
Case Title: M/S Harsh Polyfabric Pvt Ltd Vs Union of India & Ors
Coram: Hon’ble Mr. Justice MD. Nizamuddin
Case No: WPO 588 of 2019
Advocates for the Petitioner: Advs. Mr. Rahul Tangri, Mr. Dipankar Majumder
Advocates for the State: Advs. Mr. A. Ray, Ld. GP, Mr. T.M. Siddiqui, Mr. Debasish Ghosh
Advocates for the CGST Authority: Advs. Mr. K.K. Maiti, Ms. Ekta Sinha
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