Ranvir Kumar Karan vs. Union Of INDIA

Held

The Court dismissed the writ petition. The primary reason for dismissal was the reliance on the Supreme Court's judgment in Civil Appeal No.10177 of 2018, wherein the validity of the Goods and Services Tax (Compensation to States) Act, 2017, was upheld. The Court found that the issues raised by the petitioners regarding the validity of the Act and its applicability to pre-GST stock were already decided by the Supreme Court. Therefore, in light of the Supreme Court's affirmation of the Act's validity, the present petition was dismissed. The Court did not independently analyze the constitutional validity of the provisions but rather applied the precedent set by the apex court. The issue of the petitioners' counsel's repeated absence was also noted.

Facts

The petitioners, various coal traders and companies, filed a writ petition challenging the constitutional validity of Section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, and the Goods and Services Tax Compensation Rules, 2017, along with Notification No.1/2017-Compensation Cess (Rate), dated June 28, 2017. They sought to declare these provisions unconstitutional and ultra vires, arguing they should not apply to coal stocks purchased before June 2017, on which they had already paid Clean Energy Cess under the Finance Act, 2010. The respondents are the Union of India and the Chairman of the GST Council. The petitioners' counsel was repeatedly absent during the proceedings.

Key Issues

1. Whether Section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, and the Goods and Services Tax Compensation Rules, 2017, along with Notification No.1/2017-Compensation Cess (Rate), dated June 28, 2017, are unconstitutional, oppressive, and ultra vires, and thus not applicable to the petitioners for the levy of Cess on coal stocks purchased up to June 2017. 2. Whether the respondents should be directed not to require the petitioners to pay additional levy for coal stocks purchased up to June 2017, on which Clean Energy Cess was already paid under the Finance Act, 2010. The petitioners argued that the impugned provisions were unconstitutional and should not apply to their pre-GST stock. They relied on the fact that they had already paid Clean Energy Cess. The respondents placed on record a judgment of the Hon'ble Supreme Court in Civil Appeal No.10177 of 2018 (Union of India vs. Hind Energy and Coal Benefication (India Ltd.) and connected matters) which dealt with the validity of the Goods and Services Tax (Compensation to States) Act, 2017.