Divya Singla And Others vs. Union Of INDIA And Others

Held

The Court held that the prayer made in the petition had been rendered infructuous. This decision was based on the submission made by the learned counsel for respondents No.1 to 3. The counsel stated that the 26th meeting of the GST Council, held on 10.03.2018, 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 notice dated 15.05.2017, which sought information pertaining to the levy of service tax on such fees, was rendered obsolete. The Court did not delve into the legal merits of the service tax levy itself, as the subsequent development made the petition unnecessary. The operative direction was to dispose of the petition as infructuous.

Facts

The petitioners, Divya Singla and others, approached the High Court of Punjab and Haryana seeking to quash a notice dated 15.05.2017. This notice, issued by the respondents, required the petitioners to furnish information concerning the levy of service tax on fees paid for the award of a license for the sale of liquor. The petitioners challenged this demand for information related to service tax on liquor license fees.

Key Issues

1. Whether the notice dated 15.05.2017, demanding information regarding the levy of service tax on the fee paid for the award of a license for the sale of liquor, is legally sustainable? Petitioner's contention: The petitioners sought to quash the notice, implying it was not legally sustainable. Revenue/State's contention: The respondents, through their counsel, submitted that based on a decision in the 26th meeting of the GST Council held on 10.03.2018, 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 This statement effectively conceded that the demand for information was no longer valid.