Abhinav Cotspin LTD. vs. State Of Punjab And Ors.
Held
The High Court held that since the refund already granted to the petitioner could not be recovered and the Punjab Value Added Tax Rules 2005 are no longer in force due to the implementation of the GST Act, there was no case made out to examine the validity of the notification dated 28.07.2006 at this stage. The Court reasoned that it would be futile to quash a notification under an Act that has been superseded and where the financial implications of the impugned action (refund granted) are irreversible. Therefore, the writ petition was dismissed. The ratio decidendi is that a challenge to a tax notification under a repealed law, where the tax effect is already realized and cannot be reversed, and a new tax regime is in place, may not warrant judicial intervention at a later stage.
Facts
The petitioner, Abhinav Cotspin Ltd., filed a writ petition seeking to quash a notification dated 28.07.2006, issued under the Punjab Value Added Tax Rules 2005. The petitioner contended that the notification resulted in double taxation. The respondents are the State of Punjab and others. The notification was issued prior to the Goods and Services Tax (GST) Act coming into force on 01.07.2017. The High Court noted that the refund already granted to the petitioner could not be recovered and that the relevant Act was no longer in force.
Key Issues
1. Whether the notification dated 28.07.2006, issued under the Punjab Value Added Tax Rules 2005, is ultra vires the provisions of the said Act and amounts to double taxation. The petitioner argued that the notification imposed a tax that was already covered, leading to double taxation. The revenue's contention was not explicitly recorded in the judgment. However, the Court's dismissal of the petition implies a rejection of the petitioner's argument. The Court also considered the fact that the GST Act has since come into force and the previous Act is no longer prevailing, and that the refund granted to the petitioner cannot be recovered.
Sections Cited
Punjab Value Added Tax Rules 2005
AI-generated summary — verify with the full judgment below
2023:PHHC:126158-DB IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 244 CWP-10912-2007 Date of Decision: 22.09.2023 CORAM:- HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Viren Sibal, Advocate for the petitioner. Mr. Saurabh Kapoor, Addl. A.G., Punjab. **** RITU BAHRI
, J. (ORAL)
This writ petition has been filed seeking quashing of notification dated 28.07.2006 (Annexure P-2), on the ground that it is ultra vires as it amounts to double taxation. As on today, GST Act came into force from 01.07.2017 and this notification dated 28.07.2006 (Annexure P-2) has been issued under the Punjab Value Added Tax Rules 2005 (for short-the Act). Since the refund already granted to the petitioner cannot be recovered now and the Act is no longer prevailing, therefore, no case is made out to examine this notification at this stage. Accordingly, the writ petition is dismissed. (RITU BAHRI) JUDGE 22.09.2023 (MANISHA BATRA) pry JUDGE Whether speaking/reasoned Yes/No Whether reportable Yes/No PRIYANKA 2
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