Padmesh Kumar Singh vs. Union Of INDIA And 2 Others
Facts
The petitioner, Padmesh Kumar Singh, sought a refund of Goods and Services Tax (GST) on the grounds that the tax was not payable. His claim was rejected by the 3rd respondent through an order dated 24.11.2022, which stated that the tax rate was specified and the tax realized was as per law. The petitioner argued that the Motor Vehicle Tax was calculated by the Department including the GST component, which contradicts Rule 51-B of the Central Motor Vehicle (20th Amendment) Rules, 2021. This rule mandates that Motor Vehicle Tax should be calculated electronically, excluding the GST component from the invoice price. The petitioner contended that the 3rd respondent failed to consider Rule 51-B in its order, rendering it legally flawed.
Held
The Court held that the 3rd respondent had not specifically referred to Rule 51-B of the Central Motor Vehicle (20th Amendment) Rules, 2021, in its order rejecting the petitioner's refund claim. The Court acknowledged the fair stand taken by the State Counsel, who did not dispute the applicability of Rule 51-B and agreed to revisit the matter. Consequently, the Court directed the 3rd respondent to reconsider the petitioner's claim for a refund of Motor Vehicle Tax. This reconsideration must specifically refer to Rule 51-B and evaluate the prayer for refund accordingly. The fresh determination is to be completed within two months from the presentation of the certified copy of the order. The impugned order will be subject to this fresh determination.
Key Issues
1. Whether the order impugned dated 24.11.2022, passed by the 3rd respondent, is bad in law for failing to consider Rule 51-B of the Central Motor Vehicle (20th Amendment) Rules, 2021, which specifies that Motor Vehicle Tax should be calculated excluding the GST component from the invoice price? Contentions: Petitioner: The 3rd respondent erred by not referring to Rule 51-B of the Central Motor Vehicle (20th Amendment) Rules, 2021, when passing the impugned order. The calculation of Motor Vehicle Tax by the Department, which included the GST component, is contrary to this specific provision. Therefore, the order is bad in law. Respondent (State Counsel): The State Counsel did not dispute the provision of Rule 51-B and submitted that the concerned authority would revisit the matter.
Sections Cited
Rule 51-B
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC:143865-DB Court No. - 46 Case :- WRIT TAX No. - 875 of 2023 Petitioner :- Padmesh Kumar Singh Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Gaurav Gautam,Sameer Kumar Rai Counsel for Respondent :- A.S.G.I.,C.S.C.
Hon'ble Ashwani Kumar Mishra,J.
Hon'ble Syed Aftab Husain Rizvi,J.
Petitioner's claim for refund of tax on the ground that amount of tax was not payable on the G.S.T., has been rejected by the 3rd respondent while passing the order impugned dated 24.11.2022. The order impugned records that rate of tax has been specified and the tax realized from petitioner is as per law.
Learned counsel for the petitioner places reliance upon the Central Motor Vehicle (20th Amendment) Rules, 2021 wherein Rule 51-B has been incorporated, as per which, Motor Vehicle Tax is required to be calculated electronically, through the portal, on the basis of invoice price excluding Goods and Services Tax. It is submitted that the price calculated by the Department for Levy of Tax includes the G.S.T. component which is in teeth of specific provision contained under Rule 51- B. It is further submitted that the 3rd respondent while passing the order
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