M/S.Vijaya Enterprises vs. State Of Orissa
Held
The Court did not decide on the merits of the tax rate dispute. Instead, it allowed the petitioner's request to withdraw the writ petition. The petitioner was granted liberty to approach the State Government to address their grievances concerning the tax levied and the termination of their contract. The Court's decision was based on the petitioner's prayer for withdrawal and the subsequent liberty granted to pursue their concerns with the State Government, rather than a determination of the legal issues raised.
Facts
The petitioner filed a writ petition challenging the levy of Goods and Services Tax (GST) at an 18% rate, arguing that the Central Sales Tax (CST) was only 2% at the time of auction. The petitioner contended that they should not be subjected to a higher tax rate. During the pendency of the writ petition, the petitioner's contract was terminated. The petitioner then sought permission to withdraw the writ petition to approach the State Government with their grievances.
Key Issues
1. Whether the petitioner is liable to be levied GST at the rate of 18% when the CST was 2% at the time of auction, and if not, what is the appropriate tax rate applicable. Petitioner's contention: The petitioner argued that the imposition of GST at 18% is higher than the previously applicable CST of 2% and therefore should not be levied. The petitioner did not rely on specific provisions or precedents but based their argument on the disparity in tax rates. Revenue/State's contention: The judgment does not record any specific arguments made by the State-opposite party or opposite party no. 2 regarding the tax rate dispute. Their participation appears to be in response to the petitioner's plea.
AI-generated summary — verify with the full judgment below
W.P.(C) No. 11523 of 2017 04.09.2017 Heard Sri S.K. Dalai, learned counsel for the petitioner as well as Sri P.K. Muduli, lea rned Additional Government Advocate for the State-opposite party and Sri S.K. Pattnaik, learne d Senior Counsel appearing along with Sri P.K. Patnaik, learned counsel for opposite party no.
The grievance of the petitioner is that at the time of auction, the Central Sales Tax (C ST) was only 2% whereas after coming into force the GST, the Tax would now be 18%. He is thus stated that the petitioner should not be levied higher rate of tax. It is also contended that during pendency of the writ petition, the contract of the petitioner has been terminated. At t his stage, learned counsel for the petitioner states that the petitioner may be permitted to a pproach the State Government with regard to his grievances made in this writ petition. Prayer is allowed. The petitioner is permitted to withdraw this writ petition with liberty to approach the State Government with regard to his grievances made in this writ petition. The writ petition is accordingly disposed of as withdrawn.
The judgment continues below.
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Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.