New Delhi, Jan 9 (IANS) The Centre has told the Delhi High Court that matters relating to the rate, classification, and reduction of Goods and Services Tax (GST) on air purifiers fall exclusively within the domain of the GST Council, cautioning that any judicial direction in this regard would not only be constitutionally impermissible but would also violate the framework of cooperative federalism.
In a detailed counter-affidavit filed in response to a public interest litigation (PIL) seeking reduction of GST on air purifiers and their declaration as “medical devices”, the Union government said that the GST Council is a constitutional body constituted under Article 279A of the Constitution and is the “sole constitutionally designated authority” empowered to make recommendations on GST rates, exemptions and classifications.
“The constitutional text leaves no scope for parallel, substitute, or competing recommendation-making by any other institution or authority in matters expressly entrusted to the GST Council,” the Centre said, adding that any court-mandated fixation of GST rates would amount to bypassing the carefully calibrated constitutional mechanism.
“It is settled law that courts do not substitute themselves for constitutionally designated decision-makers, particularly in matters involving economic policy and fiscal structuring,” the affidavit said.
“GST decisions, particularly on rates, are the outcome of a complex process of cooperative federalism, balancing competing fiscal interests of the Union and States. Judicial interference in such matters would necessarily bypass this constitutionally mandated process and disturb the federal equilibrium,” the reply document added.
It cautioned that any direction issued by the Delhi High Court to modify GST rates, convene a meeting of the GST Council, or compel the Council to consider or adopt a particular outcome “would amount to the Court stepping into the shoes of the GST Council,” an exercise that would violate the doctrine of separation of powers.
Referring to the classification framework, the Centre said that air purifiers fall under tariff heading 8421, attracting 18 per cent GST, whereas medical devices are classified under headings 9018 to 9022, which attract a merit rate of 5 per cent following recent rationalisation by the GST Council.
“Air purifiers are not taxed at the highest slab. They are subjected to 18 per cent GST, the highest slab being 40 per cent,” the affidavit clarified. The Union government stated that the issue of GST on air purifiers is already under consideration through parliamentary procedure, following recommendations of the Department-related Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate Change.
“Entertaining the present petition at this stage would amount to parallel consideration of issues presently pending consideration in accordance with parliamentary procedure,” the affidavit said.
Terming the PIL as a “colourable and motivated attempt”, the Centre claimed that the real objective of the PIL was not reduction of GST but securing regulatory reclassification of air purifiers as medical devices. “The plea of accessibility and public health is used as a façade to advance a fundamentally different regulatory objective,” the affidavit said, adding that such reclassification could restrict public access and create conditions conducive to monopoly.
The matter is listed for hearing tomorrow before the Delhi High Court.
In the previous hearing held on December 26, a Vacation Bench comprising Justices Vikas Mahajan and Vinod Kumar granted the Centre 10 days to file its counter-affidavit after Additional Solicitor General (ASG) N. Venkataraman, appearing for the Union government, sought time to submit a detailed response.
During the hearing, ASG Venkataraman raised serious objections to the maintainability of the PIL filed by advocate Kapil Madan, contending that the petition was “loaded” and had been filed without impleading the Union Health Ministry, despite seeking directions affecting public health policy.
“We had an urgent meeting yesterday. We have concerns with this PIL. We don’t know who is behind this petition. This is not a PIL. Health department is not even a party,” the Centre’s law officer submitted.
On the other hand, the petitioner countered the Centre’s objections, relying on the recommendations of the Parliamentary Standing Committee and argued that air purifiers were being taxed under the wrong GST slab.
“On a bare reading of the notification, it is clear that they fall under a different schedule and are being wrongly taxed,” advocate Madan submitted, adding that any delay would only prolong the suffering of residents in the national Capital.
However, the Delhi High Court observed that without calling for a counter-affidavit, it could not issue final directions in the matter. “Today it’s not possible for the court to say without a counter affidavit,” the Vacation Bench had remarked.
Earlier, a Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela had asked the GST Council to convene a meeting at the earliest to consider lowering the 18 per cent GST on air purifiers, observing that a 5 per cent rate could be appropriate in view of the worsening air quality in Delhi-NCR.
The CJ Upadhyaya-led Bench had pulled up the Centre over the worsening air pollution crisis in Delhi, remarking that if clean air cannot be ensured for citizens, at the very least the GST on air purifiers should be reduced. “This is the minimum that you can do. Every citizen requires fresh air. If you cannot provide it, at least reduce the GST. Give an exemption for 15 days temporarily and treat this situation as an emergency,” it orally told the Centre’s counsel.
–IANS
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