Himesh Foods Pvt. Ltd. Vs Union of India
Date: January 19, 2026
Subject Matter
Interim Stay Granted on Adjudication Order Challenging Product Classification for GST Rate
Summary
The present Petition, initially challenging a show cause notice and subsequently an adjudication order under Section 74 of the CGST Act and State GST Act, has been allowed on an interim basis. The High Court granted a stay on the impugned adjudication order, noting that similar proceedings with identical issues are pending before a co-ordinate Bench where interim relief was previously granted. The core dispute revolves around the authorities' method of itemised sale for product classification at an 18% tax rate.
Summary of Facts and Dispute:
- Impugned Action: Show cause notice dated 3rd August 2024 issued under Section 74 of the CGST Act, 2017 read with Section 74 of the State GST Act, which was subsequently adjudicated by an order dated 4th January 2025.
- Petitioner's Argument: The authorities were not justified in adopting an approach of itemised sale of products to classify them at an 18% GST rate for the period in question.
- Core Question of Law: Whether the authorities' method of itemised sale for product classification, resulting in an 18% GST rate, is legally permissible and correctly applied.
Key Legal Issues & Findings:
Interim Relief based on Precedent
The Court considered the co-ordinate Bench order dated 2nd December 2025 in Hindustan Coca Cola Beverages Pvt. Ltd. v. Union of India through the Ministry of Finance & Ors., which involved similar issues.
- Similar Issues Identified: The present petition raised issues identical to those under consideration in the precedent case.
- Precedent for Interim Relief: In the analogous proceedings, the co-ordinate Bench had admitted the petitions and granted interim relief by staying the impugned show cause notices.
- Justification for Present Order: Given that similar proceedings are pending and a short issue is involved, the Court deemed it appropriate to pass similar interim orders in the present case.
Ruling:
- Outcome: Interim relief in the nature of a stay on the impugned adjudication order is granted till the final disposal of the Petition.
- Directions: The Petition shall be listed along with other companion matters for final hearing on 26th February 2026.
- Liberty: Not explicitly provided for in this interim order.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Although the present Petition has been filed challenging the show cause notice dated 3′ August 2024 issued under Section 74 of the CGST Act, 2017 read with Section 74 of the State GST Act, it is evident from the record that, during the pendency of this Petition, an order dated 4th January 2025 came to be passed adjudicating the said show cause notice. It appears that the Petition was thereafter permitted to be amended, and the said adjudication order has also been impugned in the present proceedings.
2. At the outset, learned Counsel for the Petitioner has drawn our attention to an order passed by the co-ordinate Bench of this Court dated 2nd December 2025 in Hindustan Coca Cola Beverages Pvt. Ltd. v. Union of India through the Ministry of Finance & Ors., along with two other companion proceedings, wherein issues similar to those raised in the present Petition were under consideration. By the said order dated 2′ December 2025, the co-ordinate Bench admitted the petitions and granted interim relief in the nature of a stay on the impugned show cause notices.
3. Considering the nature of the controversy and the issue involved, Mr. Rastogi would submit that similar orders ought to be passed in the present case. He would particularly contend that, in the facts of the Petitioner’s case, the authorities could not have adopted an approach of itemised sale of the products so as to classify the same at 18% for the period in question. Mr. Mishra would not dispute that similar proceedings are pending consideration before this Court.
4. In this view of the matter, we are inclined to pass similar orders, and accordingly, there shall be interim relief in the nature of a stay of the impugned order till the final disposal of the Petition. The Petition shall be listed along with other companion matters. As a short issue is involved, list the Petition for final hearing on 26th February 2026 (HOB).