Allahabad High Court Stays Rs.110 Crore GST Demand On Dabur's Hajmola Candy

A bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla passed the interim order in a petition filed by Dabur challenging the DGGI notice issued earlier this year.

The dispute revolves around how Hajmola Candy Tablets should be classified for taxation purposes under the Goods and Services Tax (GST) regime. The DGGI's notice, covering six financial years from 2018–19 to 2023–24, proposed a demand of ₹110.39 crore along with interest and penalties. It alleged that Dabur misclassified the product to attract a lower rate of tax.

Counsel appearing for Dabur argued that the issue had already been settled in the company's favour by the Supreme Court under the earlier excise regime. He stated that the introduction of GST had not altered the legal position regarding classification. Gupta also dismissed references to a change in international classification norms by the World Customs Organization, saying these had no bearing on Indian law. He emphasized there was no concealment of facts by Dabur.

Taking note of these submissions, the court granted four weeks to the government to file its response and allowed Dabur two additional weeks to reply. In the meantime, the court stayed all proceedings related to the disputed tax notice until the next hearing.

The matter will be heard again after the affidavits are exchanged.

Case Title: M/S Dabur India Ltd v Union of India and Ors

Case Number: WRIT TAX No. - 4709 of 2025

Counsel for Petitioner: Advocate Atul Gupta

Counsel for Respondents: Additional Solicitor General of India Dhananjay Awasthi, Saumitra Singh

Click here to read/download order