Kerala High Court To Consider Whether Entry Tax/Fee Can Be Collected At Check Posts For Bringing In Eggs From Other States

The petitioners are running a business of egg stocking, packing and sales. The Director of Animal Husbandry issued an order on July 31, 2024, establishing a check post-entry fee of two paisa per egg. The petitioners are aggrieved that the check post authorities are insisting on this check post entry payment fee for importing eggs from other States from August 01, 2024.

The plea further stated that imposing entry fees/tax on agricultural produce like eggs which are nil-rated goods is an indirect and illegal way to collect tax contrary to the provisions of the GST Act. The plea stated that essential items like egg, fruits, vegetables are categorized as GST exemption goods to make them affordable for customers.

“It is submitted that certain agricultural products such as grains, cereals, milk, eggs, fresh fruits and vegetables are classified as zero-rated supplies under GST, which means that these products are subject to a GST rate of zero per cent, ensuring that there is no tax burden on them. These products are included as NIL GST products. The classification of nil rated goods is generally covered under schedule 1 of the GST Act, 2017. Specifically, the exemption for eggs can be found under Chapter 4 of the GST Rate schedule”, stated the plea.

The plea further stated that an estimated more than one crore eggs arrive in Kerala from other states daily. It is argued that this will result in egg traders facing a huge amount of entry fees.

The plea further mentions that States cannot impose tax or fee contrary to provisions of GST Act without specific legislative backing. It is also stated that discrimination between eggs from other States and locally produced eggs is unconstitutional and illegal.

The plea thus seeks to set aside the order issued by the Director of Animal Husbandry which imposes an entry fee of 2 paisa per egg and to have it declared as illegal and arbitrary.

When the matter was taken up before Justice Gopinath P, the government pleader submitted that a statement has been filed.

The matter will be taken up for hearing on September 26, 2024.

The plea has been filed by Advocates Praveen K Joy, T A Joy,, E S Saneej, M P Unnikrishnan, N Abhilash, Deepu Rajagopal, Albin Varghese, Abisha E R, Fathima Shalu S, Megha G

Case Number: WPC No. 29173/2024

Case Title: Abdul Rahiman and Others v State of Kerala