M/S.Nabilla Enterprisers vs. State Of Orissa
Held
The Court 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 GST levy and the contract termination. The Court did not decide on the merits of the petitioner's challenge to the GST rate or its applicability. The operative direction was to permit the withdrawal of the petition and allow the petitioner to pursue alternative remedies with the State Government. No specific legal provisions were discussed or interpreted by the Court in reaching this decision.
Facts
The petitioner filed a writ petition challenging the levy of Goods and Services Tax (GST) at a higher rate of 18% compared to the previously applicable Central Sales Tax (CST) of 2% at the time of an auction. The petitioner contended that they should not be subjected to this increased tax burden. During the pendency of the writ petition, the petitioner's contract was terminated. The petitioner's counsel then requested 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 18% when the CST was 2% at the time of auction, and if the increased tax rate is legally tenable in this context. The petitioner argued that the imposition of a higher GST rate on an auction conducted under the previous CST regime is unfair and should not be applied. The petitioner's primary contention was that the tax rate should remain as it was at the time of the auction. The revenue or State's arguments are not recorded in the judgment. The petitioner sought permission to withdraw the petition to pursue their grievances with the State Government.
AI-generated summary — verify with the full judgment below
W.P.(C) No. 11501 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.