Citing the Delhi air pollution as an "emergency", the Delhi High Court on December 24 implored that the authorities must provide an exemption from GST on air purifiers. However, opposing the HC's intervention into the matter on December 26, the Union government said that cutting down GST from 18% to 5% would "open up a Pandora's box", adding that similar concerns would start coming in from other sectors, undermining the role of the GST Council.
A Public Interest Litigation (PIL) was filed by advocate Kapil Madan requesting classification of air purifiers as medical devices and reduction of GST on them from 18% to 5% in the wake of persistent smog conditions in the national capital. He argued that amid current weather conditions, these devices should be classified as essentials and not "luxury".
The Opposition
Appearing for the Centre, Additional Solicitor General (ASG) N Venkataraman argued over the intent and maintainability of the PIL. He stated that there is a particular legislative process involved while dealing with such recommendations in Parliamentary Standing Committee reports and how the proposals put forth in the GST Council meetings are processed. The ASG questioned, "How can a judicial process short-circuit all of those processes?"
The ASG cited regulations 14 and 15 of the GST Council's 'Procedure and Conduct of Business Regulations of the GST Council' and said that for this change, all the council members would need to be present.
Opposing the PIL and even questioning the motive and bona fides 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…"
The ASG added, "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.”
Addressing the ASG over the matter, the Division Bench of justices Vikas Mahajan and Vinod Kumar remarked that the price range of air purifiers starts from around Rs 10,000 and goes up to Rs 60,000, making it extremely difficult for the common man to buy. The court questioned the difficulty in the GST Council meeting that could very well "take a call" and make the air purifiers affordable. The ASG countered by saying that the GST Council involves Finance ministers from all over the country and "each one perceives it very differently".
The ASG further flagged concerns and said that no one really knew who was behind the petition - if it is just a ruse or someone wants a monopoly in air purifiers. "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," the ASG submitted.
He warned the court that pushing the matter further would breach the separation of powers between the legislature and judiciary.
Next hearing date
Taking the ASG's submissions into account, the bench directed the Centre to file a counter affidavit within 10 days and also told the petitioner to file a rejoinder within the same time frame. The matter will be next heard on January 9.
