2026-VIL-380-MAD
  1. Home
  2. 2026-VIL-380-MAD

SGST High Court Cases

GST – Challenge to classification of product as "chewing tobacco" under CETH 2403 99 10 instead of "unmanufactured tobacco" under CETH 2401 20 90, Maintainability of writ petition - The appellant had initially classified its product as "chewing tobacco" under CETH 2403 99 10 but later sought to reclassify it as "unmanufactured tobacco" under CETH 2401 20 90 - Whether the appellant is bound by the classification earlier made by them or whether the appellant is entitled to seek reclassification - HELD - Mere availability of an alternative remedy of appeal or revision would not oust the jurisdiction of the High Court and render the writ petition "not maintainable" where the controversy is a purely legal one and does not involve disputed questions of fact but only questions of law. Calling upon the appellant to go before the authority would be a futile exercise. The contention of the department is overruled and held that the writ petition is maintainable – On merit, there is no estoppel against a party in a taxation matter and the assessee is not bound by the stand they had originally taken or by the admission made during enquiry. The principle of estoppel is invoked only when the other party changes their position pursuant to the representation made, which is not the case here as the Department cannot be heard to say that they stand prejudiced because of the shift in position by the assessee. The burden of proof lies on the department to justify the classification and the assessee is entitled to seek reclassification - The product made by the appellant is "unmanufactured tobacco" and not "chewing tobacco". The process adopted by the appellant, which involves drying, stripping, and dipping the raw tobacco in jaggery water, does not amount to a manufacturing process and the product continues to retain its original character. The Court relies on the Explanatory Notes to the HSN and the principles laid down by the Supreme Court in UOI v. Delhi Cloth and General Mills Co., Ltd. and Crane Betel Nut Powder Works v. CCE, Thiruppathi to conclude that the appellant's product is classifiable under CETH 2401 20 90 as "unmanufactured tobacco" - The order impugned in the writ petition as well as the order of the learned Single Judge are set aside and the writ petition is allowed, holding that the appellant's product is classifiable under CETH 2401 20 90 as "unmanufactured tobacco" – The petition is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTAT Appeal filed wrongly...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

Security-Code
New Code?
New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?