Ernakulam Merchants Association vs. Union Of INDIA
Held
The Court held that the petitioners were under a misconception regarding the nature of GST. The tax levied under GST is on the supply of goods or services, and the petitioners, as assessees, have the primary liability to pay tax. The ability to collect tax from the end consumer is merely an enabling provision to pass on the tax, not a service to the government.
Facts
The petitioners, an association of merchants, contended that they were not treated at par with Tax Return Preparers under direct taxation schemes. They argued that collecting tax from customers and paying it to the government constituted a service for which they should be remunerated, and its absence was discriminatory.
Key Issues
Whether the collection and payment of GST by merchants to the government constitutes a service for which remuneration is due, and if non-payment amounts to discrimination.
Sections Cited
Goods and Service Tax Act
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 17TH DAY OF AUGUST 2017/26TH SRAVANA, 1939 WP(C).No. 26370 of 2017 (U) ---------------------------- PETITIONER(S): ----------------------- 1. ERNAKULAM MERCHANTS ASSOCIATION,
DOOR NO. 40/1519, BROADWAY, ERNAKULAM,
KOCHI-682 011, POST BOX NO. 1102,
REPRESENTED BY ITS PRESIDENT K.G. VENUGOPAL,
KANNOTH HOUSE, MATHAI MANJOORAN ROAD,
H.P.C. JUNCTION, PACHALAM, KOCHI-682 012. 2. T.J.F. LEO PAUL,
GENERAL SECRETARY,
ERNAKULAM MERCHANTS ASSOCIATION,
THUNDIPARAMBIL HOUSE, PUZHAKARAPADOM,
VENNALA P.O., ALINCHUVADU, KOCHI-682 028. BY ADVS.SRI.SREEKANTH S.NAIR, SRI.S.JATHIN DAS. RESPONDENT(S): -------------------------- 1. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. 2. STATE OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF FINANCE, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001. R1 BY ADV. SRI.N.NAGARESH, ASSIST. S.G. OF INDIA. R2 BY GOVT.
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