Challenge to GST Circular on Classification and Rates to be Governed by Supreme Court Decision
Issue: The legality, validity, and propriety of Circular No. 80/54/2018-GST, dated 31-12-2018, which provides clarifications regarding GST rates and classification of goods.
Facts:
- An instant petition was filed challenging the aforementioned circular.
- The subject matter of this challenge was already under consideration before the Supreme Court.
Decision: The instant petition was disposed of with a direction that it would be governed by the judgment passed by the Supreme Court. The decision of the Supreme Court would be binding on this case as well.
Key Takeaways:
- Judicial Efficiency: When a matter is already pending before a higher court (like the Supreme Court), lower courts may dispose of similar petitions by directing that their outcome will be determined by the higher court’s judgment. This promotes judicial efficiency and consistency.
- Precedent: Decisions of the Supreme Court are binding on all other courts in India, including High Courts.
- Impact of Supreme Court Ruling: The ultimate determination of the legality and validity of Circular No. 80/54/2018-GST will depend entirely on the Supreme Court’s ruling on the same matter.
HIGH COURT OF HIMACHAL PRADESH
Satguru Print and Packers
v.
Union of India
Tarlok singh chauhan and Sushil Kukreja, JJ.
CWP No. 10228 of 2023
MAY 5, 2025
Sanjeev Kumar Suri, Adv. for the Petitioner. Balram Sharma, DSGI, Rajeev Sharma, Adv., Anup Rattan, Adv. General, Ramakant Sharma, Navlesh Verma, Ms. Sharmila Patial, Additional Advs. General and J.S. Guleria, Dy. Adv. General for the Respondent.
ORDER
Tarlok Singh Chauhan, J. – The instant petition has been filed for grant of the following substantive relief:-
“(i) That the impugned circular dated 31.12.2018 (Annexure
P-1) may kindly be quashed and set aside with further directions to the respondents to withdraw Annexures P-4, P5 and P-7.”
2. The subject matter of the challenge in this petition, whereby the legality, validity and propriety of Circular No. 80/54/2018-GST, dated 31.12.2018 is already under consideration before the Hon’ble Supreme Court of India in Union of India v. Association of Technical Textiles Manufacturers and Processors [SLP (C) Diary No. 17041 of 2024], wherein the Hon’ble Supreme Court on 15.04.2025, passed the following order:-
“Ld. Counsel for respondent No. 1 has submitted that counter affidavit has been filed. Registry to verify and update the records.
Service is complete on respondent no. 2 but none has entered appearance.
If counter affidavit is found to have been filed by respondent no. 1, Registry to process the matter for listing before the Hon’ble Court as per rules. However, if the same is not filed, be filed within four weeks as last opportunity and thereafter Registry to process the matter for listing before Hon’ble Court as per rules.”
3. Since the issue involved in this petition is already pending consideration before the Hon’ble Supreme Court, therefore, keeping in view the judicial discipline, we refrain ourselves from giving our opinion with respect to Circular No. 80/54/2018-GST, dated 31.12.2018, as assailed in this petition. We direct that the present petition shall be governed by the judgment passed by the Hon’ble Supreme Court and the decision thereto, shall be binding on this case also.
4. As the matter is pending before the Hon’ble Supreme Court, the interim order passed in this case, would continue to operate and would be governed by the final adjudication of the Hon’ble Supreme Court on the issue in the aforesaid Special Leave Petition.
The petition is disposed of in above terms, so also the pending application(s), if any.