Parbhjit Singh Sarna vs. The Commissioner Central Goods And Services Tax Commissionerate
Held
The Court held that the prayer made in the present petition had been rendered infructuous. This decision was based on the submission made by the learned counsel for the respondent. The respondent's counsel, acting on instructions, informed the Court 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. Consequently, the notices issued to the petitioner seeking information for the levy of service tax on such fees were no longer relevant. The Court disposed of the petition in light of this development, without delving into the legal merits of the taxability of the license fees under the previous or current tax regimes.
Facts
The petitioner, Parbhjit Singh Sarna, filed a writ petition before the Punjab and Haryana High Court 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, 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 dispute revolves around the taxability of these license fees.
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 (Service Tax regime) or the CGST Act, 2017. The petitioner argued that the notices demanding information were arbitrary and sought to levy service tax on a non-taxable item. The respondent, through its counsel, made a submission based on instructions received. The respondent's counsel stated 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 conceded the petitioner's underlying grievance.
Sections Cited
None explicitly mentioned as being discussed in detail, but the context implies discussions around service tax and GST levies.
AI-generated summary — verify with the full judgment below
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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.7949 of 2018 (O&M)
Date of Decision: 12.09.2018 Parbhjit Singh Sarna
...... 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 2018.09.13 10:36 I attest to the accuracy and integrity of t
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