Telangana State Road Transport Corporation vs. P.Santosh Kumar

Facts

The Telangana State Road Transport Corporation (TSRTC), represented by its Vice Chairman and Managing Director, and its Regional Manager, are the appellants. The respondent is a license holder operating an ice cream stall at a bus station. The appellants are aggrieved by interim orders passed by a learned Single Judge in writ petitions filed by respondents seeking to direct the appellants to collect monthly license fees without insisting on the payment of Goods and Services Tax (GST) along with the license fee. The Single Judge had granted this interim relief, restraining the appellants from collecting GST. Aggrieved by these interim orders, the appellants filed intra-court appeals. In these appeals, the operation of the interim orders of the writ petitions was stayed. The parties agreed that instead of pressing the appeals or vacating the stay applications, it would be appropriate to have the writ petitions taken up for final hearing and disposal. They agreed to treat a specific writ petition as the lead matter.

Held

The Court disposed of the writ appeal in light of a common judgment passed by a Division Bench on 09.03.2021 in W.A.No.710 of 2019 and other connected matters. The common judgment confirmed the interim orders passed in the appeals, directing the parties to appear before the learned Single Judge on 05.03.2021 for fixing a date for arguments. The judgment stated that the appellants/Corporation shall be free to recover the GST till the matters are decided finally by the learned Single Judge. The impugned order in the present case was to remain in abeyance, and the interim orders passed by the learned Single Judge were stayed until the disposal of the writ petitions. The Court directed that the common judgment shall be applicable mutatis mutandis to the present case. The office was directed to list W.P.No.6605 of 2019 along with other connected matters before the Bench having the roster.

Key Issues

1. Whether the appellants can be restrained from collecting GST along with the license fee during the pendency of the writ petitions? Contentions of the Petitioner/Respondent: The petitioner sought to direct the appellants to collect monthly license fees without insisting on the payment of GST along with the license fee, during the pendency of the writ petitions. The petitioner was granted interim relief by the learned Single Judge, restraining the appellants from collecting GST. Contentions of the Revenue/Appellants: The appellants are aggrieved by the interim orders passed by the learned Single Judge. They sought to vacate the interim orders and were granted a stay on the operation of the interim orders passed in the writ petitions. The appellants are asserting their right to collect GST along with the license fee.