Pandit Ramsundar Shukla Shiksha Aivam Prashikshan Sansthan vs. The State Of Madhya Pradesh

Held

The Court held that the demand for GST on affiliation fees for academic sessions 2017-2018, 2018-2019, and 2019-2020 was legally sustainable. The Court noted that while a previous writ petition had addressed the waiver of GST during the COVID-19 pandemic, the review petition modified that order, specifically excluding the 2019-2020 academic session from the waiver and including the 2020-2021 session. Crucially, the Court found no record of any stay granted by any court concerning the recovery of GST for the academic sessions 2017-2018, 2018-2019, and 2019-2020. Therefore, the authorities were within their rights to demand these payments. The petitioner was found to be duty-bound to pay the GST for the aforementioned academic sessions and the balance affiliation fee for the 2020-2021 academic session. As no interim relief had been granted for these specific dues on earlier occasions, the Court found no grounds to extend any relief to the petitioner. The petition was deemed to be without merit. The operative direction was to dismiss the petition.

Facts

The petitioner, Pandi Ramsundar Shukla Shiksha Evam Prashikshan Sansthan, an educational institution affiliated with Avadhesh Pratap Singh Vishwavidyalaya (Respondent No. 4), challenged an order dated 21.02.2023. This order demanded the deposit of 18% Goods and Services Tax (GST) on affiliation fees for academic sessions 2017-2018, 2018-2019, and 2019-2020, along with the balance affiliation fee of Rs. 1,90,000/- for the academic session 2020-2021. The petitioner argued that the demand for GST on prior academic sessions was unjustified, especially given the financial difficulties caused by the COVID-19 pandemic. A previous writ petition had led to a direction to waive GST charges during the pandemic, which was later modified to exclude the 2019-2020 academic session and include 2020-2021. The impugned order threatened affiliation cancellation for the 2022-2023 academic session if the dues were not cleared within seven days.

Key Issues

1. Whether the demand for GST on affiliation fees for academic sessions 2017-2018, 2018-2019, and 2019-2020 is legally sustainable, considering the prior directions regarding waiver of GST during the COVID-19 pandemic? Petitioner's Arguments: The petitioner contended that the demand for GST on affiliation fees for the academic sessions prior to the COVID-19 pandemic was illegal. They argued that a previous order in W.P. No. 18818 of 2020 had directed the waiver of GST charges during the pandemic. Although this order was modified by a review petition (R.P. No. 66/2023) to exclude the 2019-2020 academic session and include 2020-2021, the petitioner believed the demand for earlier sessions was still invalid. They also pointed out that the impugned order was issued when the pandemic situation had subsided, but the demand for GST on pre-pandemic sessions remained. Respondents' Arguments: The respondents (State and University) argued that the impugned order was legal and justified. They contended that there was no stay granted by any court regarding the recovery of GST for the academic sessions 2017-2018, 2018-2019, and 2019-2020. They asserted that the petitioner was duty-bound to pay the GST for these sessions and the balance affiliation fee for 2020-2021, as these payments were due. The surcharge was incurred due to the petitioner's own delayed payment of affiliation fees.