M/S.T.Prasad Rao vs. State Of Orissa
Held
The Court did not decide the merits of the petitioner's grievance regarding the tax rate. Instead, it allowed the petitioner's request to withdraw the writ petition. The Court granted the petitioner liberty to approach the State Government to address their grievances. The primary finding was that the petitioner was permitted to withdraw the petition. The operative direction was to dispose of the writ petition as withdrawn, with the liberty granted to the petitioner. No specific issue regarding the tax rate was decided or left undecided.
Facts
The petitioner filed a writ petition challenging the imposition of 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 a higher rate of 18% when the Central Sales Tax (CST) was only 2% at the time of auction, and if so, on what legal basis? Petitioner's contention: The petitioner argued that the increased tax rate from 2% CST to 18% GST is unfair and should not be applied. They did not explicitly cite any 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 issue. Their participation was in response to the petitioner's plea for withdrawal.
AI-generated summary — verify with the full judgment below
W.P.(C) No. 11528 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.