GST Duty on Hajmola Candy Already Settled by SC: Allahabad HC Stays Fresh Proceedings Against Dabur India Ltd - Taxscan

In a significant development for Dabur India Ltd., the Allahabad High Court has granted interim relief by staying proceedings initiated under a GST show-cause notice concerning the classification and applicable tax rate for its product, Hajmola Candy Tablets.

The matter was heard in Writ Tax No. 4709 of 2025 by a division bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla.

The petitioner, Dabur India Ltd., challenged the issuance of a show-cause notice under the GST regime that proposed a higher tax rate on Hajmola Candy Tablets. The company's counsel argued that the issue of classification had already been conclusively settled under the earlier Central Excise and Customs regime.

Specifically, Dabur pointed to a series of adjudications that culminated in a favourable ruling by the Supreme Court. In that decision, the Apex Court had upheld Dabur’s classification of Hajmola Candy Tablets under a lower duty slab.

The petitioner’s counsel submitted that the introduction of the GST regime did not materially alter the statutory framework governing the classification of such goods. Therefore, the settled position under the Excise regime should continue to apply.

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The petitioner explained that judicial discipline required authorities to respect the finality of the Supreme Court’s decision, especially when the underlying product and its characteristics remained unchanged.

A key point of contention was the reference to developments at the World Customs Organisation (WCO), which had reportedly altered the classification of similar goods in foreign jurisdictions. Dabur argued that such international changes should not override domestic judicial precedent or influence classification within India’s tariff boundaries.

After hearing both sides, the Court noted that the matter involved substantial questions of law and judicial consistency.

The Divisional Bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla observed that the petitioner had made a prima facie case for interim protection, especially in light of the Supreme Court’s earlier ruling.

In its interim order, the Court directed that all proceedings pursuant to the impugned show cause notice shall remain stayed until the next date of listing.