M/S Grn Constructions PVT LTD vs. Commercial Tax Officer And Another

Held

The Court noted that the Petitioner's counsel, on instructions, submitted that the matter had been settled under the One Time Settlement Scheme introduced by the Government of Telangana. Consequently, the Petitioner sought withdrawal of the writ petition. In light of this submission and the Petitioner's request, the Court dismissed the writ petition as withdrawn. The Court did not delve into the constitutional validity of the provisions or the legality of the assessment order, as the case was disposed of on the ground of settlement and withdrawal. No costs were awarded. Any pending miscellaneous petitions were also dismissed as a sequel.

Facts

M/s GRN Constructions Pvt Ltd (Petitioner) filed a writ petition challenging an assessment order dated December 21, 2019, passed by the Commercial Tax Officer (Respondent No. 1). The order confirmed a demand of INR 23,32,656/- for the financial year 2017-18 (up to June 2017) under the Telangana Tax on Entry of Goods into Local Areas Act, 2001. The demand pertained to the purchase of machinery, transmission fluid, greases, engine oils, and brake fluids. The Petitioner sought to declare the definition of 'importer' under Section 2(1)(h) read with Section 3(1)(a) of the 2001 Act as unconstitutional, and Section 174 of the Telangana Goods and Services Tax Act, 2017, as ultra vires. The Petitioner also argued the assessment was illegal, arbitrary, and without jurisdiction.

Key Issues

1. Whether the definition of 'importer' under Section 2(1)(h) read with Section 3(1)(a) of the Telangana Tax on Entry of Goods into Local Areas Act, 2001, is unconstitutional on grounds of being vague, arbitrary, and violative of Articles 14 and 265 of the Constitution of India. 2. Whether Section 174 of the Telangana Goods and Services Tax Act, 2017, is ultra vires the Constitution (101st Amendment Act, 2016) and devoid of legislative competence due to the omission of Entry 52 of List II of Schedule VII from September 16, 2016. 3. Whether the assessment order dated December 21, 2019, confirming a demand of INR 23,32,656/- for the FY 2017-18 (up to June 2017) under the Telangana Tax on Entry of Goods into Local Areas Act, 2001, for the purchase of specific goods, is illegal, arbitrary, not notified goods, violative of Section 3(2) of the said Act, and without jurisdiction, thereby violating Articles 14 and 19(1)(g) of the Constitution of India. Petitioner's contentions: The Petitioner argued that the definition of 'importer' was vague and arbitrary, violating constitutional provisions. They also contended that Section 174 of the GST Act was beyond the legislative competence of the State after the omission of Entry 52. The assessment order was challenged as illegal and without jurisdiction. Revenue's contentions: The judgment records no specific arguments from the Revenue.