Jugsalai Nagar Parishad Vs Union of India (Jharkhand High Court)
The Jharkhand High Court dealt with multiple writ petitions challenging orders passed by adjudicating authorities under the CGST Act, 2017. The primary issue before the Court was whether such writ petitions were maintainable when an alternative statutory remedy of appeal under Section 107 of the CGST Act was available to the petitioners.
The petitioners, comprising Municipal Corporations and Nagar Parishads, contested the GST demands imposed on them. They argued that such demands were inherently illegal and without jurisdiction. To support this contention, they relied on judicial precedents, including decisions of the Supreme Court, asserting that where an order is wholly without jurisdiction, the existence of an alternative remedy does not bar the maintainability of a writ petition.
The petitioners further contended that local self-government bodies are immune from GST, relying on constitutional provisions such as Articles 243W and 243X, along with Entry V of List II of the Seventh Schedule. They also cited a Madras High Court decision to argue that GST cannot be imposed on Municipal Corporations or similar local authorities under any circumstances.
On the other hand, the respondents opposed these claims, arguing that the petitioners’ position was misconceived. They submitted that the adjudicating authority had already examined the factual aspects of the transactions and concluded that only core governmental functions might qualify for exemption. The GST demand, in these cases, related to routine transactions involving the sale of goods or services, which were not constitutionally or statutorily exempt.
