HC Dismissed Writ Petition Against Demand of 18% On Right To Collect Human Hair At Temple Premises

Case Details: Naresh Women Hair Enterprises v. State of Telangana - [2023] 157 taxmann.com 69 (Telangana)

Judiciary and Counsel Details

• • P. Sam Koshy & N. Tukaramji, JJ.

Facts of the Case

In the present case, Devasthanam issued an auction notification for disposal of human hair and petitioner got right to collect human hair from temple premises. The department imposed GST of 18% on right to collect human hair and it filed writ petition against imposition of GST by contending that collection of hair from the temple premises would amount to outright sale and Notification No. 2/2017-Central Tax (Rate) exempts charging of GST on the sale of human hair.

High Court Held

The Honorable High Court noted that as per tender agreement, it was clear that person in whose name bid would be finalized would be liable to make payment of GST at 18% and the petitioner was quite aware of said condition and with wide open eyes, participated in tender process and quoted its price.

Moreover, the petitioner got only a right to collect human hair which had been offered in tender and the same had been accepted by it. Thus, the Court held that nature of function performed couldn’t be brought within ambit of sale of goods, but it would fall within ambit services of granting right to collect hair. Therefore, the Court held that there were no merits in petition against imposition of tax and writ petition was to be disposed of.