SC stays order, says arguable Qs raised

New Delhi: The Supreme Court on Tuesday stayed the operation of a Delhi High Court order that ruled as "unconstitutional" the imposition of the Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators by individuals for personal use, by noting that arguable questions had now been raised by the Centre.

A special bench of Justices DY Chandrachud and M R Shah issued notice on the plea and sought a response from the petitioner, who had filed the PIL before the high court.

We are staying the operation of the Delhi High Court order till further orders, the bench said.

Attorney General KK Venugopal said the GST council will be meeting on June 8 and would deliberate on granting exemption to essential commodities related to COVID-19, including oxygen concentrators.

On May 21, the Delhi High Court had quashed the May 1 notification issued by the Ministry of Finance which says that such oxygen concentrators imported for personal use, irrespective of whether they are a gift or otherwise, will be charged with an IGST of 12 per cent.

However, during the hearing on Tuesday, the Supreme Court noted that the High Court had not gone into the purpose of importing the oxygen concentrators while passing the order even as AG Venugopal pointed out that the Delhi HC's order had cast too wide a net.

At one point, Justice Chandrachud also pointed out that the Centre had already exempted IGST for the import of oxygen concentrators by government agencies. To this, AG Venugopal explained that this was done because the concentrators needed to be supplied to the poor and needy and for this, the government agency importing this equipment needed the IGST exemption whereas no such need arises when one is importing it for personal use.

Meanwhile, Justice MR Shah questioned whether Article 14 of the Constitution was applicable to an issue of taxation policy — a matter the Delhi High Court had considered in its order and ruled that they do in times of such crisis.