Delhi HC refuses to exempt GST for oxygen equipment

The Delhi High Court on Tuesday refused to grant any relief after a Public Interest Litigation (PIL) sought to exempt Goods and Service Tax (GST) on machinery related to the setting up of oxygen plants.

New Delhi: The Delhi High Court on Tuesday refused to grant any relief after a Public Interest Litigation (PIL) sought to exempt Goods and Service Tax (GST) on machinery related to the setting up of oxygen plants.

The Bench of Justice DN Patel and Justice Jasmeet Singh while declining the plea said, "this is a policy decision of the government, we see no reason to issue any direction to the government in this regard." Meanwhile, the court asked the concerned authority to treat the plea as representation.

The petition was filed by the NGO Due Process of Law India Foundation through advocate Saurabh Kansal and Ashu Chaudhary.

Senior Advocate Arun Mohan appeared for the petitioners and sought directions to the respondents - the Centre and Delhi government to exempt plants and machinery related to the installation of oxygen plants from Goods and Service Tax (GST) for a period of six months or till the present pandemic situation ends in accordance with provisions of the Central Goods and Services Tax Act and the corresponding provisions in the State legislations.

The petition states that the present situation where the exercise of the power of exemption from applicable tax is a public necessity which is necessary to save the people from the pandemic.

It also stated that the respondents have the power to exempt the GST on necessary items in case of a serious condition, thus the Respondents should use their power in this pandemic situation and waive GST on certain equipment.

It also said that if the GST was waived, the same could be used to install additional plants in these times of need and save more lives.

Meanwhile, the Finance Ministry informed that no consignment of 3,000 oxygen concentrators is pending with the Customs authorities. The Ministry responded after the matter regarding a consignment of 3,000 oxygen concentrators lying with Customs authorities came up in the Delhi High Court.

It was clarified in the court by the Government Counsel that presently no such consignment is pending with the Custom authorities.

As the social media has been flooded with the news that 3,000 oxygen concentrators are with the Customs, the Ministry said: "We have again checked with our field formations and there is no such consignment with the Customs."

"However, since a photograph has also been put on Twitter, if anybody has information as to where it is, the same may be informed to us and we will take immediate action," it added.

(With inputs from ANI)