Terming that entertaining the petition would “open up a Pandora’s box” and that the Centre is “scared from the constitutional perspective”, ASG N Venkataraman, appearing for the Centre said that there is already a legislative process involved in dealing with recommendations made in parliamentary standing committee reports as well as how GST Council meetings deliberate on proposals. “How can this process be scuttled through a court process?,” ASG implored.
While the Delhi HC, on December 24 had also suggested the Centre to consider if a virtual meeting of the Council can be called for given the emergent air pollution situation in Delhi and its surrounding areas, ASG Venkataraman also made it clear on Friday that the same will not be possible.
Referring to regulations 14 and 15 of the GST Council’s ‘Procedure and Conduct of Business Regulations of the GST Council’ which details how proposals before the Council are to be deliberated and voted on, including voting on the proposal through secret ballots, the ASG clarified that the process would involve physical presence of all Council members.
Opposing the PIL and even questioning the motive and bonafide of the PIL, ASG said, “This is not a PIL at all… GST is only a ruse. This will open up a Pandora’s box…there is a process.. We will go through the process…filing a petition and getting a mandamus (direction) issued asking the GST Council to say this or that…we are scared from the constitutional perspective, it is doctrine of separation of powers…We can’t give a committed date (on the GST Council meeting) (but) we certainly see an agenda (by the petitioner), we are very very concerned…If air purifier, if it has to be declared as a medical device,…so much complication in licensing procedure. It is extremely regulated…There is a process involved. How can this process be scuttled through a court process?..I see a lot of things calculated in this petition, I may be wrong or right.”
A division bench headed by Chief Justice on December 24 had instructed the Centre to take instructions on when the GST Council can be convened to deliberate on the issue, while also suggesting that in light of the hazardous air pollution levels in Delhi-NCR, a virtual meeting may also be considered and at the earliest.
On Friday, the PIL was taken up before a bench of Justices Vikas Mahajan and Vinod Kumar.
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Addressing ASG N Venkataraman after he voiced his opposition to the relief being sought under the PIL, Justice Mahajan orally remarked, “Court’s only concern was, as I can see from the order (of December 24) that having regard to the pollution situation in Delhi and surrounding areas, why the GST should not be reduced from 18 to 5%. Whatever way you want, you do it, find a way out for that. The price range for air purifiers is starting from Rs 10-12,000 and goes up to Rs 60,000. It is beyond the reach of a common man. Why not bring it down to a reasonable level where a common man can also afford it?…What is the difficulty in the GST Council meeting, and they can take a call.”
ASG responded that the GST Council involves the finance ministers across the nation and “each one perceives it very differently.”
He added, “…we (Centre’s Ministry of Finance) had an urgent meeting yesterday. We have the following concerns with this petition: it is a loaded petition, we want to know who is behind this petition. This is not a PIL at all. Please come to prayers, it has nothing to do with GST, GST is only a ruse. (For prayer seeking classification of air purifier as a medical device) health ministry is not even a party to the petition. Who is he (petitioner) trying to finish, we don’t know. Somebody wants a monopoly in air purifiers, we don’t know. We are really concerned about it…it is a convoluted, loaded petition, it is our prima facie view.”
Warning that any court direction in this regard may breach the separation of powers between the legislature and judiciary, ASG Venkataraman submitted, “…separation of powers is a basic structure….(the parliamentary standing committee of science and technology which tabled a report this Parliament session recommending GST cut or abolition on air purifiers and HEPA filters) The report has been sent to the Environment ministry, they will in turn ask for an action taken report from the department of revenue. If required, the Department of Revenue will lead evidence. …”
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The bench, taking the ASG’s submission on the GST Council meeting procedure that disallows virtual meetings, permitted the Centre to file a counter-affidavit within ten days’ time, and also permitted the petitioner, to file a rejoinder to the same by the next date of hearing .
The Delhi HC will hear the matter next on January 9.
Practising advocate Kapil Madan, appearing as party-in-person in the PIL, has submitted through the petition that air purifier can be classified as a medical device as per a notification of the MOHFW of 11 February 2020. With the said classification, air purifiers can then be charged at 5% GST instead of the 18% GST charged on it at present.
