M/S.Om Shanti Hari 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 tax rate and the termination of their contract. The Court did not decide on the merits of the petitioner's claim regarding the tax rate differential between CST and GST. The operative direction was to dispose of the writ petition as withdrawn, with the petitioner free to pursue their concerns with the State Government.
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 entitled to be taxed at the earlier rate of 2% CST instead of the new GST rate of 18% on the transaction, given the change in tax regime. Petitioner's Contention: The petitioner argued that the increase in tax rate from 2% CST to 18% GST is unfair and should not be applied to their transaction, implying a vested right to the lower rate. The petitioner also stated that their contract was terminated during the pendency of the petition. 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 or the petitioner's grievances. Their presence is noted as per procedure.
AI-generated summary — verify with the full judgment below
W.P.(C) No. 11508 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.