M/S.Al Haq Traders 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. Therefore, there is no finding on the issue of tax rate applicability or the reasoning behind it. The operative direction was to permit the withdrawal of the petition.

Facts

The petitioner filed a writ petition challenging the levy of tax at a higher rate under GST compared to the Central Sales Tax (CST) applicable at the time of auction. The petitioner contended that the tax rate increased from 2% under CST to 18% under GST. 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 levied tax at the lower rate applicable under CST, despite the introduction of GST and a higher rate. Petitioner's contention: The petitioner argued that the tax rate should not be increased from 2% (CST) to 18% (GST) for their transaction, implying a grievance against the applicability of the higher GST rate. The petitioner also stated that their contract was terminated during the pendency of the petition. Revenue/State's contention: No specific arguments were recorded for the State-opposite party or opposite party no. 2 regarding the tax rate dispute. The judgment notes their presence and representation.