Betel leaves not forest products: HC
Source: The Sangai Express

Imphal, April 21 2019: Justice Kh Nobin, High Court of Manipur has quashed and set aside the notification order issued by the Additional Chief Secretary, Forest and Environment (October 29, 2016), the notification of the Under Secretary, Department of Forest and Environment (April 13, 2017) and the notification of the Joint secretary, Forest and Environment, (April 28, 2018) for the inclusion of betel leaves as forest products.

The High Court order was passed on April 10 in connection with different writ petitions which were filed challenging the notification for the inclusion of the leaves as forest products by the Department of Forest and Environment and with the State of Manipur as respondents.

The writ petitions, which were filed by the agencies/ shops which have been selling such products at different places in the State for more than 10 years, were disposed by a common judgment on April 10.In their petitions, it was submitted that betel leaf is basically a commodity in Manipur as it is considered to be an essential component in every traditional function and rituals of the State like marriage ceremony, Shradha and all kinds of religious ceremonies.

Over and above, the betel leaves are imported/brought from neighbouring States like West Bengal, Assam and others where they are planted and grown abundantly.

The petitions further reasoned that betel leaf is said to be a horticulture product and a perishable item, which was not included in the list of forest products for the last many years in Manipur and the plantation of betel leaves as horticulture items was also seen in Kakching in more than 4 hectares of lands and at Noney as well as Jiribam.

The petitions explained that as per the notification of Union of India Ministry of Finance dated June 28, 2017, certain goods of Inter-State supplies are exempted from the purview of the Central Goods and Services Tax Act 2017 and betel leaf is shown in serial number 93 and as such, any kind of goods and service taxes cannot be levied on betel leaves.

So imposition and levying of VAT on betel leaf is an illegal tax collection, the petitioners argued.

After hearing both sides, the Single Bench High Court of Manipur kept the order reserved on March 14 and on April 10, the Single Bench comprising of Kh Nobin, passed an order allowing the writ petitions.

Consequently, the HC quashed and set aside the notifications issued by the State Government classifying betel leaves as forest products.

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