Pushpender vs. State Of Haryana And Another

Held

The Court held that the matter relates to the imposition, determination, and recovery of tax. It reasoned that tax matters inherently fall within the domain of public interest, but this does not automatically render them amenable to Public Interest Litigation. The Court concluded that the imposition, determination, and recovery of tax cannot be assailed by filing a Public Interest Litigation. Therefore, the petition was dismissed on the grounds of maintainability. The Court did not delve into the merits of the challenge to the notification itself, as the procedural route chosen by the petitioner was deemed inappropriate.

Facts

The petitioner filed a Public Interest Litigation (PIL) challenging a notification dated 28.03.2017 issued by the State of Haryana. This notification pertained to the charge and imposition of road tax on new vehicles. Specifically, the challenge was to the inclusion of Goods and Services Tax (GST) paid by customers in the ex-showroom price, which was then used as the basis for levying road tax. The petitioner noted that a similar petition concerning the inclusion of Value Added Tax (VAT) in the taxable amount for road tax determination was already pending before the High Court. The petitioner sought for the present petition to be entertained on similar grounds.

Key Issues

1. Whether the imposition, determination, and recovery of tax can be assailed through a Public Interest Litigation. This issue turns on the maintainability of a PIL for challenging tax-related matters. The petitioner argued that the matter, involving the imposition of tax on new vehicles and the inclusion of GST in the tax base, was a matter of public interest and therefore suitable for a PIL. The respondents (State of Haryana and another) contended that tax-related matters are not appropriate for PILs. The Court considered the nature of the challenge, which directly involved the imposition, determination, and recovery of tax.