Rajwinder Singh vs. The Commissioner Central Goods And Services Tax Commissionerate
Held
The Court noted the submission made by the learned counsel for the respondent, who stated that the GST Council, in its 26th meeting on March 10, 2018, had decided that no GST or Service Tax is leviable on the fee paid for the grant of a license for the sale of liquor for human consumption. In light of this submission, which effectively resolved the issue of taxability, the Court found that the prayer made in the present petition had become infructuous. Therefore, the petition was disposed of accordingly. The specific provisions of the Finance Act, 1994, or any other law were not extensively discussed as the matter was resolved by the subsequent decision of the GST Council. The ratio decidendi is that a subsequent administrative decision clarifying taxability can render a pending litigation infructuous, leading to the disposal of the petition.
Facts
The petitioner, Rajwinder Singh, filed a writ petition before the High Court of Punjab and Haryana seeking to quash three letters/notices dated May 29, 2017, July 14, 2017, and January 11, 2018. These notices were issued by the Commissioner, Central Goods & Services Tax Commissionerate, Jalandhar (the respondent), requesting the petitioner to provide information regarding the levy of service tax on fees paid for the award of a license for the sale of liquor. The tax period in question is not explicitly stated, but the notices relate to the period when service tax was applicable before GST.
Key Issues
1. Whether service tax is leviable on the fee paid for the grant of a license for the sale of liquor for human consumption, under the relevant provisions of the Finance Act, 1994 (as service tax was applicable at the time of the notices). Contentions: Petitioner: The petitioner sought to quash the notices demanding information for the levy of service tax on liquor license fees. Respondent: The respondent, through its counsel, submitted that in the 26th meeting of the GST Council held on March 10, 2018, it was decided that no GST or Service Tax is leviable on the fee paid for the grant of a license for the sale of liquor for human consumption. This submission effectively concedes the petitioner's underlying grievance.
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216-3
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.8002 of 2018 (O&M)
Date of Decision: 12.09.2018 Rajwinder Singh
...... Petitioner Versus The Commissioner, Central Goods & Services Tax Commissionerate, Jalandhar ....... Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE AMIT RAWAL Present: Mr. Akshay Bhan, Senior Advocate with Mr. Alok Mittal, Advocate for the petitioner. Mr. Tajender Joshi, Advocate for Mr. Anshuman Chopra, Advocate for the respondent. RAJESH BINDAL J. The petitioner approached this Court seeking quashing of impugned letter/notice dated 29.05.2017, 14.07.2017 and 11.01.2018 whereby the respondent asked the petitioner to furnish certain information with reference to levy of service tax on the fee paid for award of license for sale of liquor. Learned counsel for the respondent fairly submitted that he has received instructions to the State that in 26th meeting of GST Council held on 10.03.2018 it has been decided that no GST/Service Tax is leviable on the fee paid for grant of license sale of liquor for human consumption. Rittu 2018.09.14 09:54 I attest to the accuracy and integrity of this
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