Court dismisses PIL seeking exemption of drugs for rare diseases from GST and customs duty.

Case Name:

Cure Sma Foundation Of India & Ors. Vs. Union Of India & Ors. (GST SC Case)

Key Takeaways:

- The court emphasized that it cannot direct the government to exempt drugs for rare diseases from taxes or customs duty, as it is a policy decision to be taken by the government.

- The court also refused to issue a writ of mandamus directing the government to permit the import of drugs for the treatment of Spinal Muscular Atrophy (SMA) directly without approaching the Centre of Excellence.

- The petitioners were not entitled to the reliefs sought in the writ petition.

Issue:

Should the court issue a writ of mandamus directing the government to exempt drugs for the treatment of rare diseases from GST, CGST, SGST, and customs duty, and permit the import of such drugs directly without approaching the Centre of Excellence?

Facts:

- The CURE SMA Foundation of India and others filed a PIL petition under Article 32 of the Constitution.

- The petitioners sought exemption of drugs for the treatment of rare diseases from GST, CGST, SGST, and customs duty.

- They also sought permission to import drugs for the treatment of SMA directly without approaching the Centre of Excellence.

Arguments:

- The petitioners argued for a writ of mandamus directing the government to exempt drugs for rare diseases from taxes and customs duty, and to permit direct import of such drugs without approaching the Centre of Excellence.

- The government, through the Additional Solicitor General, highlighted the initiatives taken to incorporate Information and Communication Technology (ICT) in revenue litigation.

Key Legal Precedents:

The judgment does not explicitly cite any legal precedents.

Judgement:

The court dismissed the writ petition, holding that:

1. No writ of mandamus can be issued directing the government to exempt drugs from taxes or customs duty, as it is ultimately a policy decision for the government.

2. No relief can be granted to permit the import of drugs for SMA treatment directly without approaching the Centre of Excellence, as there may be reasons for the drugs to be cleared by the Centre.

3. The petitioners are not entitled to any reliefs as prayed for in the writ petition.

4. However, the petitioners are free to make a representation to the Union of India/Ministry of Health.

5. Any pending interlocutory applications also stand disposed of.

FAQs:

Q1: Why did the court dismiss the petition?

A1: The court dismissed the petition because it cannot issue a writ of mandamus directing the government to exempt drugs for rare diseases from taxes or customs duty, as it is a policy decision to be taken by the government. The court also cannot direct the government to permit the import of such drugs without approaching the Centre of Excellence.

Q2: Can the petitioners appeal the court's decision?

A2: The judgment does not mention the possibility of an appeal. However, in general, parties have the right to appeal a decision of the Supreme Court through a review petition or a curative petition, subject to certain conditions.

Q3: What recourse do the petitioners have after the dismissal of the writ petition?

A3: The court stated that it will be open for the petitioners to make a representation to the Union of India/Ministry of Health regarding their concerns.

Q4: What was the significance of the court's decision?

A4: The court's decision reinforced the principle that it cannot issue directions to the government on policy matters related to taxation or customs duty, as these are decisions to be taken by the government based on various factors.

Q5: Does the court's decision affect the availability of drugs for rare diseases in India?

A5: The court's decision does not directly affect the availability of drugs for rare diseases in India. However, it maintains the status quo regarding the taxation and import procedures for such drugs, which may have an indirect impact on their availability and affordability.

By way of this petition filed under Article 32 of the Constitution of India in the nature of Public Interest Litigation (PIL), the following prayers/ reliefs are sought :

(a) Pass a writ of and/or writs in the nature of mandamus directing the respondent to completely exempt drugs for treatment of rare diseases from the levy of IGST, CGST, SGT and Custom Duty;

(b) Pass a writ of and/or writs in the nature of mandamus directing the respondents to permit import the drugs for treatment of SMA directly without approaching the Centre of Excellence;

(c) Pass such further or other orders(s) as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.

So far as prayer (a) is concerned, ultimately it is for the Government to take a policy decision whether to completely exempt drugs for treatment of rare diseases from the levy of IGST, CGST, SGT and Custom Duty. No writ of mandamus can be issued directing the respondent/Union of India to exempt the drugs from payment of any tax or custom duty.

So far as prayer (b) is concerned, no relief can be granted. No writ of mandamus can be issued directing the respondents to permit import the drugs for treatment of SMA directly without approaching the Centre of Excellence. There may be number of reasons why the drugs are to be cleared by the Centre of Excellence.

In view of the above, the petitioners are not entitled to any reliefs as prayed for in the instant writ petition.

With this, the writ petition stands dismissed.

However, it will be open for the petitioners to make a representation to the Union of India/Ministry of Health.

Pending interlocutory application(s), if any, also stands disposed of.