5% GST on Nizam Pakku: Madras HC quashes DGGI’s Notice as Clear abuse of Law

The Madras High Court has quashed a DGGI notice that sought to impose 18% GST on "Nizam Pakku," a betel nut product, instead of the 5% that the manufacturer was paying. The court ruled that the notice was a "clear abuse of law," as the issue had already been settled by the Supreme Court and other tribunals. This decision provides significant relief to the manufacturer and serves as a crucial reminder to tax authorities that they cannot reopen a settled matter on the same facts and legal provisions.