Judiciary Fixing GST Rate On Air Purifiers Would Disrupt Constitutional Framework: Centre Tells Delhi High Court

The Central Government has opposed before the Delhi High Court a public interest litigation (PIL) to declare air-purifiers as “medical devices” and for removing imposition of 18% GST on them.

In its affidavit, the Government has said that the GST Council is the sole Constitutionally designated body for making recommendations on matters pertaining to GST, and judicial interference in such matters would necessarily bypass the constitutionally mandated process.

The affidavit says that such an interference would also disturb the federal equilibrium protected by Article 279A of the Constitution of India.

It adds that a direction to convene a meeting of the GST Council, or to compel the GST Council to consider or adopt a particular outcome, would amount to the Court stepping into the shoes of the GST Council, “thereby exercising functions that the Constitution has consciously and exclusively entrusted to the GST Council.”

For context, earlier the Court had orally remarked that the authorities must provide exemption from GST on air purifiers, considering the air pollution situation in the national capital as an “emergency.”

“….it is submitted that if courts were to issue directions on GST rates or compel specific recommendations, the GST Council would be reduced to a mere rubber stamp, contrary to the constitutional scheme,” the affidavit states.

“Therefore, it is submitted that a court-mandated GST rate, imposed without recourse to the GST Council's consultative process and without hearing all constituent members including members who are not affected by the underlying cause leading to a certain proposal, would undermine the principle of hannonisation under Article 279A(6) and disrupt the GST architecture,” it adds.

The affidavit submits further that such an exercise would also violate the doctrine of separation of powers, which forms part of the basic structure of the Constitution, by encroaching upon a fiscal and policy domain expressly entrusted to the executive and legislative branches.

The Centre has also contended that the petition is a colourable and motivated attempt to secure regulatory reclassification under the guise of public-interest.

The matter is listed for hearing tomorrow by a division bench headed by Chief Justice DK Upadhyaya.

The plea has been moved by lawyer Kapil Madan. The plea says that air purifiers cannot be treated as luxury but rather are necessity to face extreme air pollution.

Madan contends that air purifiers qualify as medical devices under a notification issued under Section 3(b)(iv) of the Drugs and Cosmetics Act as they perform a preventive function by mechanically filtering and removing hazardous particulate matters.

He says there exists no rational, scientific, or basis to classify medical devices at the concessional rate of 5% GST while simultaneously taxing air-purifiers at 18%, particularly when the latter performs essential preventive functions during periods of severe air-pollution.

The plea has been filed through Advocates Gurmukh Singh Arora and Rahul Matharu. 

Title: Kapil Madan v. Union of India & Ors