Case Law Details
Good Morning Flour Mills Vs State of Punjab And Others (Punjab and Haryana High Court)
Punjab and Haryana High Court heard a writ petition filed by Good Morning Flour Mills challenging Section 174(2) of the GST Act, 2017. The court noted that the issue had already been adjudicated in Tecnimont Spa India Project Office v. Punjab and Another (CWP No. 18967 of 2020), where similar challenges to Section 174(2) under various state GST laws were upheld as constitutional by the Kerala High Court. The Supreme Court, in T.S. Belaraman v. The Commercial Tax Officer & Others (C.A. No. 006724/2024), has since granted leave to appeal, maintaining an interim order preventing the revenue department from taking coercive action.
In light of the Supreme Court’s pending final adjudication, the High Court disposed of the writ petition in terms similar to Tecnimont Spa. It directed that all interim orders granted in such cases would continue to operate until the Supreme Court delivers its verdict. The decision effectively defers the resolution of the matter, ensuring petitioners receive temporary relief while awaiting the Supreme Court’s ruling. Pending applications related to the case were also disposed of accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. Notice of motion.
2. Mr. Saurabh Kapoor, Addl. A.G., accepts notice for the respondents.
3. Both the counsel are ad idem accepts notice for the that the issue involved in the present petition stands finally adjudicated by this Court in CWP No. 18967 of 2020 (O&M) “Tecnimont Spa India Project Office vs. Punjab and another another”, decided decided 10.12.2024 wherein, we have held as under:
“1. The issue raised in the present bunch of writ petitions is challenge to section 174(2) of the GST Act, 2017. The same provision was incorporated as section 174(2) of the Kerala State Goods and Services Tax Act, 2017 as has been incorporated in Punjab State Goods and Services Tax Act, 2017 and Haryana State Goods and Services Tax Act, 2017.
2. Challenge to vires of the said section was laid before the High Court of Kerala in bunch of cases which were decided in favour of the Revenue holding the provisions as within the framework of the Constitution of India, and also the action was held to be within the competence of the department.
3. The concerned assesses have assailed the judgment before the Supreme Court in C.A. No.006724/2024, [SLP(C) No.640/2023] titled as T.S. Belaraman vs. The Commercial Tax Officer and others along with connected SLPs, wherein leave has been granted vide order dated 14.05.2024. By interim order, the Revenue was restrained from taking any coercive steps, which has been directed to be continued by the Supreme Court while granting leave.
4. In the present bunch of cases, we have also passed similar interim orders and had posted these cases for waiting for the decision of the Supreme Court. However, now since the Supreme Court has granted leave, final adjudication will have to be done by the Supreme Court on the said issue.
5. Keeping in view thereto, we propose to dispose of all these writ petitions and direct that the challenge to section 174(2) of the GST Act, 2 of the the case of T.Belaraman (supra). in the case of T.Belaraman (supra).
6. disposal of SLP T.Till the the in S. Be Belaraman (supra) by the Supreme Court, interim orders passed by this Court in all the cases shall be respective continue to operate, which shall subject to final decision rendered the to be by the Supreme Court in S.T. Belaraman supra.
7. Writ Petitions stand disposed of as above.”
4. we Keeping in view above, dispose of this Writ Petition in the aforesaid terms. The observations and order passed above shall apply mutatis mutandis to the present case.
5. All of pending applications also stand disposed accordingly.
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