Facts of the Case

M/s Godrej Consumer Products Ltd. had sought a direction from the Gauhati High Court compelling the CGST authorities to adjudicate its special-rate applications, filed under Para 3(2) of Notification No.20/2007-CE dated 25.04.2007, and to restrain recovery action pending such adjudication, relying on the Supreme Court's judgment in Union of India v. M/s V.V.F. Ltd. (2020). While the writ petition was pending, the Principal Commissioner, CGST Commissionerate, Guwahati passed five separate orders, all dated 06.12.2021, fixing the special rate (value addition) for the financial years 2013-14 through 2017-18, ranging from 43.36% to 58.29%.

Issues Involved

  1. Whether the petitioner's grievance — non-adjudication of its special-rate applications — survived once the Commissioner passed the rate-fixation orders during the pendency of the writ petition.

Petitioner's Arguments

  • The Respondent Authorities should be directed to adjudicate the pending special-rate applications and refrain from recovery action pending such adjudication, in line with the Supreme Court's ruling in V.V.F. Ltd.

Respondent's Arguments

  • Counsel for the GST Department placed on record five orders, all dated 06.12.2021, showing that the special rate applications for the years 2013-14 to 2017-18 had already been adjudicated and the rates fixed.

Court Order / Findings

  • Since the applications had already been adjudicated and the special rates fixed for all five years in question, the Court held that nothing further survived for adjudication in the writ petition.
  • The petition was closed with the observation that the parties would be governed by the value addition so fixed; the petitioner was granted liberty to obtain certified copies of the rate-fixation orders.

Important Clarification

This is a pre-GST Central Excise valuation matter (Notification No.20/2007-CE), not a GST decision, and it records no independent finding on the correctness of the rates fixed — the writ simply became infructuous because the relief sought (adjudication) had already occurred by the time the case was heard.

Sections Involved

  • Central Excise Act, 1944 and Notification No.20/2007-CE dated 25.04.2007 — special-rate fixation for area-based exemption

Decision – In Favour of

Neither party on merits — writ petition closed as infructuous since the underlying adjudication had already taken place.

Case Details

  • Court: Gauhati High Court (Assam, Nagaland, Mizoram and Arunachal Pradesh)
  • Case No.: WP(C)/3868/2020
  • CNR: GAHC010112762020
  • Coram: Hon'ble Mr. Justice Devashis Baruah
  • Date: 31.08.2023

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