Jiahua Declration And Design Engineering India Pvt. Ltd. Vs Union of India (Punjab & Haryana High Court)
The Punjab and Haryana High Court in Jiahua Declaration and Design Engineering India Pvt. Ltd. vs Union of India dismissed a constitutional challenge to Sections 69 and 132 of the Haryana Goods and Services Tax Act, 2017 (HGST Act), following the Supreme Court’s recent ruling upholding similar provisions in the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioners had questioned the constitutional validity of these provisions on the grounds of lack of legislative competence and alleged violation of Article 13 of the Constitution of India.
Court’s Consideration and Reference to Supreme Court Precedent
The respondents argued that the issue was already settled in favour of the revenue by the Supreme Court judgment in Radhika Agarwal vs Union of India and Others (2025), which upheld the constitutional validity of Sections 69 and 132 of the CGST Act—provisions analogous to those under the HGST Act. The High Court relied extensively on the reasoning and findings of the Supreme Court in that decision.
The Supreme Court in Radhika Agarwal had held that Parliament possesses the legislative competence under Article 246-A of the Constitution to enact provisions related to the levy, collection, and prevention of evasion of Goods and Services Tax (GST). The Court observed that Article 246-A is a comprehensive provision granting Parliament and State Legislatures the power to legislate on all aspects concerning GST, and that the doctrine of “pith and substance” applies to its interpretation.
