Supreme Court Stay put Order to Cut Down IGST on Oxygen Concentrators

Story Highlights
  • (AG) KK Venugopal submitted an appeal to the top court
  • A bench of Justices D.Y. Chandrachud and M.R. Shah issued a formal notice
  • AG demanded an expeditious solution

New Delhi: The Supreme Court on Tuesday stayed a Delhi High Court verdict which declared the levy of Integrated Goods and Services Tax (IGST) on oxygen concentrators imported for personal use or as a gift as a violation of the fundamental right to life. 

 A Bench of Justices D.Y. Chandrachud and M.R. Shah issued formal notice on an appeal filed by the Ministry of Finance that the High Court encroached into policy by quashing the May 1 notification, which had imposed 12% IGST on concentrators imported for private use or as a gift.  The notice read,” Issue notice, returnable in four weeks. Till the next date of hearing, there will be a stay on the operation of the High Court’s order.” The Supreme Court said that a report has to be submitted by June 8, in this regard.

The Attorney General (AG) KK Venugopal, law officer representing the Ministry of Finance, submitted to the top court that the Delhi High Court’s order trenches upon policy. He further stated that the exemption which has been granted for oxygen concentrators is also for a distinct classification.

“A decision had already been taken in the 43rd meeting of the GST Council on May 28 to constitute a Council of Ministers so that COVID-19 related items are exempted. The High Court entered into the area of policy” Mr. Venugopal submitted.

He additionally said that the High Court decision ought to be stayed to provide a clear field for the Council to take a decision on COVID-19-related equipment.

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