SC stays Delhi HC’s quashing of IGST on import of oxygen concentrators for personal use

The federal government mentioned that IGST was imposed to take care of parity with a industrial consumer and to keep away from black advertising and profiteering.

The Supreme Court docket on Tuesday stayed the Delhi High Court order that quashed the Union authorities’s choice to impose 12% Built-in Items and Service Tax (IGST) on import of oxygen concentrators for private use, as “unconstitutional”.

A bench led by Justice D Y Chandrachud sought response from the PIL petitioner on an attraction by the Finance Ministry towards the HC’s Might 21 choice.

It additionally mentioned that the HC judgment infringes on a pure problem of coverage. “Exemption granted for imported concentrators imported by the state or state company is a unique class. Can’t class particular person imports in the identical means,” the Bench mentioned.

The HC had quashed the Might 1 notification issued by the Ministry of Finance which acknowledged that oxygen concentrators imported for private use, no matter whether or not they’re a present or in any other case, will likely be charged with an IGST of 12%. The HC held that oxygen concentrators ought to be handled on par with life-saving medicine.

Lawyer Common Okay Okay Venugopal informed the SC that even because the IGST was introduced all the way down to 12% from 77%, the HC felt that the imposition of IGST violated Proper to Life.

Representing the Centre, the highest legislation officer argued that the IGST exemption was granted to state and its companies for import of oxygen concentrators as these have been to be given free to the poor and needy whereas people can’t be given such leisure.

Stating that the HC ought to have stayed away from any coverage choice like imposition of taxes, the AG mentioned {that a} choice was taken on Might 28 at forty third GST Council assembly to represent a Council of Ministers for exempting Covid-19-related objects. He mentioned the Excessive Court docket entered into an space of coverage because the exemption was primarily based on distinct classification.

The federal government mentioned that IGST was imposed to take care of parity with a industrial consumer and to keep away from black advertising and profiteering.

The HC order got here on a PIL by 85-year-old Covid-19 affected person, whose nephew had despatched an oxygen generator as a present to him from the US. He argued that the imposition of IGST by the Finance Ministry on gadgets meant for private use violated the Article 14 and in addition abridged the suitable to have oxygen, which was a part of the Proper to Life beneath Article 21 of the Structure.