M/S Lux Industries Limited vs. Union Of INDIA And Ors.

Held

The Court held that the issue concerning the vires of Rule 89(5) of the CGST/WBGST Rules had been finally settled by the Hon'ble Supreme Court in the case of Union of India & Ors. Vs. VKC Footsteps India Pvt. Ltd. (2021 SCC Online SC 706). In that judgment, the Supreme Court upheld the constitutional validity of the aforesaid provisions. Consequently, the High Court found no merit in the present writ petition, as the core issue raised by the petitioner had already been decided against them by the apex court. The Court dismissed the writ petition based on this precedent.

Facts

The petitioner, M/s. Lux Industries Limited, filed a writ petition challenging the vires of Rule 89(5) of the CGST/WBGST Rules. The petitioner sought a declaration that this rule was ultra vires and beyond the scope of Section 54(3) of the CGST Act and WBGST Act. The writ petition was filed before the High Court. The respondents were the Union of India and other CGST and State authorities.

Key Issues

1. Whether Rule 89(5) of the CGST/WBGST Rules is ultra vires and de hors Section 54(3) of the CGST Act and WBGST Act? The petitioner argued that Rule 89(5) was beyond the legislative competence of the rule-making authority and inconsistent with the parent Act. The revenue, represented by the Union of India and CGST/State authorities, contended that the rule was valid and constitutionally sound. The court noted that this issue had been finally settled by the Supreme Court.