Subodh Rana (President) And Others vs. State Of U.P. Thru. Prin. Secy. Govt. Of U.P. Transport Deptt. U.P. Civil Sectt. Lko. And Others
Held
The Court has chosen not to decide the merits of the contentions raised by both parties. Instead, it has directed Opposite Party No. 2 to examine the matter upon an application being submitted by the petitioners within one week. Opposite Party No. 2 is to take a considered decision regarding the petitioners' liability to pay GST. The reasoning behind this decision is to allow for a proper review of the issue by the concerned authority without the High Court making a definitive ruling at this stage. The ratio decidendi is that when a specific circular and a potential repeal of an Act are in contention regarding GST liability, the appropriate administrative authority should first consider the matter on an application by the aggrieved party. The operative direction is for the petitioners to submit an application to Opposite Party No. 2 and for Opposite Party No. 2 to pass a considered decision. No issue was expressly left undecided; rather, the decision was deferred to the administrative authority.
Facts
The petitioners, Subodh Rana and others, are seeking to avoid payment of GST. They contend that they are not liable to pay GST based on a Circular dated 03.08.2022 issued by the Ministry of Finance, Department of Revenue (Tax Research Unit). However, Opposite Party No. 4, reportedly based on advice from a Chartered Accountant, is insisting on the payment of GST. The respondents, represented by learned counsel, argue that the U.P. Motor Vehicles (Special Provisions) Act, 1976, has been repealed, implying the petitioners have no basis for their claim. The High Court has not entered into the merits of these contentions.
Key Issues
1. Whether the petitioners are liable to pay GST in light of the Circular dated 03.08.2022 issued by the Ministry of Finance, Department of Revenue (Tax Research Unit)? Petitioner's contention: The petitioners argue that the aforementioned circular exempts them from GST liability. They are being compelled to pay GST based on an opinion from a Chartered Accountant. Respondent's contention: The respondents argue that the U.P. Motor Vehicles (Special Provisions) Act, 1976, has been repealed, and therefore, the petitioners have no claim to be exempted from GST. The judgment does not record specific arguments from the respondents regarding the interpretation of the circular itself, but rather focuses on the repeal of the Act.
AI-generated summary — verify with the full judgment below
Court No. - 3 Case :- WRIT TAX No. - 79 of 2023 Petitioner :- Subodh Rana (President) And Others Respondent :- State Of U.P. Thru. Prin. Secy. Govt. Of U.P. Transport Deptt. U.P. Civil Sectt. Lko. And Others Counsel for Petitioner :- Asit Srivastava Counsel for Respondent :- C.S.C.,Ratnesh Chandra Hon'ble Rajan Roy,J.
Hon'ble Manish Kumar,J.
Heard Shri Asit Srivastava, learned counsel for the petitioners, learned Additional Chief Standing Counsel for the State and Shri Ratnesh Chandra, learned counsel for the opposite parties no. 3 and 4.
Petitioners claim that they are not liable to pay GST in view of the Circular dated 03.08.2022 of the Ministry of Finance, Department of Revenue (Tax Research Unit), yet, based on some opinion, oral or written, given by the Chartered Accountant the opposite party no. 4 is insisting on payment of GST by the petitioners.
Shri Ratnesh Chandra, learned counsel for the opposite parties no. 3 and 4 says that the U.P. Motor Vehicles (Special Provisions) Act, 1976 has already been repealed, therefore, the petitioners have no claim.
Be that as it may, without entering into the merits of the contention, let the opposite party no. 2 look into the matter on
The judgment continues below.
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