HC Refuses to Mandate GST Council on Petroleum Inclusion, Citing Policy Domain.

HC Refuses to Mandate GST Council on Petroleum Inclusion, Citing Policy Domain.

Issue

Can a High Court issue a writ of mandamus to compel the GST Council to determine a specific date for the inclusion of petroleum products (petrol and diesel) within the Goods and Services Tax (GST) regime?

Facts

• A series of writ petitions were filed in the Kerala High Court seeking a direction to the GST Council to include petrol and diesel under the GST framework.
• The petitioners argued for judicial intervention to bring these products into the GST net.
• The court took note of the 45th GST Council meeting, where the Council had already considered the matter and decided that it was not the appropriate time for such inclusion.
• The petitioner cited the Supreme Court’s judgment in the Aeltemesh Rein case to argue that a mandamus could be issued.

Decision

• The Kerala High Court dismissed all the writ petitions.
• It held that the decision on when, or if, to include petroleum products under GST is a policy matter that falls exclusively within the prerogative of the GST Council.
• The court clarified that it cannot issue a writ of mandamus because no citizen has a statutory or constitutional right to demand the inclusion of any product under a specific tax law.
• It distinguished the petitioner’s reliance on the Aeltemesh Rein judgment, stating that the Supreme Court’s direction in that case was to enforce an existing statutory right, which is absent in the present matter.
• The court concluded that interfering in such a policy determination would be an unwarranted judicial overreach into the Council’s exclusive domain.

Key Takeaways

• Separation of Powers: This judgment strongly reaffirms the principle of separation of powers. Courts will not step into the shoes of the executive or legislative bodies (like the GST Council) to make policy decisions.
• Limits of Mandamus: A writ of mandamus is a powerful tool, but it can only be used to enforce a clear, pre-existing legal duty or right. It cannot be used to dictate policy or compel a discretionary action.
• GST Council’s Autonomy: The ruling reinforces the autonomy and authority of the GST Council as the sole constitutional body responsible for making recommendations on GST policy, including the inclusion or exclusion of goods and services.
• Petroleum in GST Remains a Policy Call: The path for bringing petrol and diesel under GST is through political and economic consensus within the GST Council, not through judicial directives.