K.K.Ramesh vs. The Union Of INDIA

Facts

The petitioner, K.K. Ramesh, filed a Public Interest Litigation seeking a Writ of Mandamus. The petitioner requested the court to direct the respondents to bring petrol and diesel prices under the Goods and Services Tax (GST) ambit, aiming for 'One Nation One Tax'. The petitioner argued that this would reduce fuel prices, consequently lowering the cost of essential goods, which are largely transported by road. The petitioner had previously submitted a representation dated February 16, 2018, to the respondents, but no response was received. The respondents, represented by the Assistant Solicitor General of India, accepted notice and sought time to obtain instructions regarding steps taken to bring petroleum products under GST.

Held

The Court held that it cannot issue a positive direction to the Goods and Services Tax Council to bring petrol and diesel prices within the ambit of GST. The Court reasoned that the decision on whether to include petroleum products under GST is for the Goods and Services Tax Council to make. Section 9(2) of the Central Goods and Services Tax Act, 2017, specifically addresses the levy of Central Tax on petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel, stating it shall be levied from such date as may be notified by the Government on the recommendations of the Council. The Court emphasized that the GST Council includes representation from State Governments, and their views must be considered. Furthermore, the Government has the power to grant exemptions based on the Council's recommendations. The Court cited established legal principles that policy decisions are generally not subject to judicial interference unless found to be arbitrary, based on irrelevant considerations, mala fide, or against statutory provisions. Therefore, it is the prerogative of the Central Government, acting on the recommendations of the GST Council, to decide on bringing petroleum products under GST. The Court found itself unable to issue the positive direction sought by the petitioner.

Key Issues

1. Whether this Court, in its writ jurisdiction under Article 226 of the Constitution of India, can issue a positive direction to the Goods and Services Tax Council to bring petrol and diesel prices within the ambit of GST? Petitioner's Arguments: - The petitioner contended that the primary objective of the GST Act is 'One Nation One Tax'. - Petrol and diesel have not been brought under the purview of GST, despite the international crude oil prices being low, leading to exorbitant selling prices. - The increase in fuel prices directly impacts the common man due to increased transportation costs for goods, especially essential commodities. - The petitioner relied on his representation dated February 16, 2018, to which no response was received. Revenue's Arguments: - The learned Assistant Solicitor General of India accepted notice and sought time to get instructions regarding the steps taken to bring petroleum products within the ambit of GST. No specific arguments were recorded.