Star Cement Meghalaya LTD. vs. State Of Meghalaya
Held
The Court held that since the Meghalaya Clinker Cess Act, 2015, has been repealed by the Meghalaya Goods and Services Tax Act, 2017, any cess on manufactured clinker produced within the State under the repealed Act is impermissible. Consequently, the Court found the petition to be rendered infructuous. The reasoning was based on the submission of the Advocate General that the Act was repealed and no recovery was effected, making the challenge to the Act and the demand for cessation of recovery moot. The operative direction was to dispose of the petition as infructuous.
Facts
The petitioner, Star Cement Meghalaya Limited, filed a writ petition challenging the Meghalaya Clinker Cess Act, 2015, seeking to declare it ultra vires, invalid, void, and unconstitutional. The petitioner argued that the levy of cess on manufactured clinker under this Act was beyond the legislative competence of the State legislature and sought to restrain the respondents from realizing the cess. The State, through the Advocate General, submitted that the Meghalaya Clinker Cess Act, 2015, had been repealed by the Meghalaya Goods and Services Tax Act, 2017. The State further contended that no recovery had been effected under the repealed Act, rendering any refund petition infructuous.
Key Issues
1. Whether the Meghalaya Clinker Cess Act, 2015, is ultra vires, invalid, void, and unconstitutional, and consequently, whether the levy of cess on manufactured clinker produced in the State of Meghalaya under this Act is beyond the legislative competence of the State legislature, as argued by the petitioner. The petitioner relied on the principle that a State legislature cannot levy a tax on an item that falls within the purview of the Union List or is otherwise beyond its legislative powers. 2. Whether, in light of the repeal of the Meghalaya Clinker Cess Act, 2015, by the Meghalaya Goods and Services Tax Act, 2017, and the absence of any recovery effected under the repealed Act, the writ petition has become infructuous, as argued by the State. The State contended that since the Act is repealed and no recovery was made, the prayer for relief is no longer maintainable.
Sections Cited
Meghalaya Clinker Cess Act, 2015, Meghalaya Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
1
Serial No.09 Regular List HIGH COURT OF MEGHALAYA AT SHILLONG
WP(C) No.279/2016
Date of Order: 07.12.2018
Star Cement Meghalaya Limited Vs. State of Meghalaya & ors
Coram:
Hon’ble Mr. Justice Mohammad Yaqoob Mir, Chief Justice Hon’ble Mr. Justice S.R. Sen, Judge
Appearance: For the Petitioner/Appellant(s) : Dr. A Saraf, Sr.Adv with
Mr. P Baruah, Adv For the Respondent(s)
: Mr. A Kumar, Advocate General with
Mr. A Kharmawphlang, GA
i) Whether approved for reporting in
Yes/No Law journals etc.: ii) Whether approved for publication in press:
Yes/No
Per Mohammad Yaqoob Mir, ‘CJ’: (ORAL)
It is the submission of learned Advocate General that the Meghalaya Clinker Cess Act, 2015 has been repealed by the Meghalaya Goods and Services Tax Act, 2017. Furthermore, there was no recovery as such no question of refund petition may be dismissed as infructuous.
Learned counsel for the petitioner submits that it is a fact that the Act of 2015 has been repealed in the year 2017. Under the repealed Act, no recovery was effected now there can
The judgment continues below.
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