Tvl. Nanguneri Kanyakumari Tollway Private Limited vs. The State Tax Officer

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an appeal remedy before the Deputy Commissioner (GST Appeals) (State Tax), Madurai, under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petitions with liberty granted to the petitioner to approach the appellate authority. The petitioner was permitted to raise all the grounds raised in the writ petitions before the appellate authority. The Court directed that if an appeal is filed within one month from the date of receipt of a copy of the order, it shall be entertained by the appellate authority without insisting on the limitation period. The appellate authority was further directed to dispose of the appeal in accordance with law, after examining all facts and circumstances, within two months thereafter. No costs were awarded.

Facts

The petitioner, Tvl. Nanguneri Kanyakumari Tollway Private Limited, filed three writ petitions challenging assessment orders for the tax periods 2020-2021, 2021-2022, and 2022-2023, passed by the respondent, the State Tax Officer. The petitioner argued that the assessment orders were without jurisdiction and illegal. The core of the dispute involves the taxability of toll charges collected for road usage. The petitioner contended that this service is exempt under Notification No.12/2017-CT(R) and that a clarification from the 22nd GST Council Meeting supported their position. The respondent argued that show cause notices were issued, and the petitioner has an alternative appeal remedy under Section 107 of the TNGST Act, 2017, and should not have approached the High Court directly.

Key Issues

1. Whether the assessment orders upholding the demand for GST on toll charges for road usage are without jurisdiction, considering the exemption under Entry No.23 of Notification No.12/2017-CT(R)? 2. Whether the assessment orders are illegal and violate the principles of natural justice by failing to consider the clarification issued during the 22nd GST Council Meeting on 06.10.2017 regarding the nature of toll payments? Petitioner's Arguments: The petitioner argued that the impugned orders are without jurisdiction because toll charges for road usage are exempt under Entry No.23 of Notification No.12/2017-CT(R). They further contended that the orders are illegal and violate natural justice as they disregard the clarification from the 22nd GST Council Meeting, which stated that toll is a payment for road usage, not for construction services to NHAI. Respondent's Arguments: The respondent argued that the assessment orders were passed after issuing show cause notices (DRC-01) and that the petitioner possesses an alternative appellate remedy under Section 107 of the TNGST Act, 2017, before the Deputy Commissioner (GST Appeals). Therefore, the respondent contended that the High Court should not interfere.