Case Law Details
Karan Agencies Vs Goods and Services Tax Council and Ors. (Bombay High Court)
Bombay High Court deferred the hearing in the matter of levy of VAT or GST on Extra Neutral Alcohol as matter already pending before Supreme Court.
Facts- The main issue involved in this Petition is regarding levy of tax on Extra Neutral Alcohol. The question raised is whether the levy and collection should be under the State VAT Act or under the GST regime.
Conclusion- We find that since very issue is being considered and group of Petitions is being listed before the Hon’ble Supreme Court immediately, appropriate course of action would be to defer the hearing.
We do not find any recovery notice issued to the buyers. If such recovery notices are issued by the Respondent-State, it is open to them to apply in the pending petitions, which application will be decided on its own merits.
Ad-interim order operating in these Petitions to continue till the next date with the above clarification and liberty to the Buyers in this group as above.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
Heard learned Counsel for the Parties.
2. After hearing the parties on 1 February 2023, this group of Petitions was deferred till today. While granting adjournment we have noted the contentions of the learned Counsel in International Spirit and Wine Association of India that the issue is pending in the Hon’ble Supreme Court and the hearing of this Petition would be deferred till then. We have stated that the submission would be considered on the next date.
3. The main issue involved in this Petition is regarding levy of tax on Extra Neutral Alcohol. The question raised is whether the levy and collection should be under the State VAT Act or under the GST regime. Learned counsel for the Association has placed on record a copy of affidavit filed by the Union of India in Special Leave Petition (Civil) No. 7736 of 2022. He has drawn the attention of this Court to the stand taken by the Union of India that the subject matter would also include a policy decision by the GST Council.
4. Learned Counsel for the Association states that a Petition challenges the order passed by the Allahabad High Court is filed in the Hon’ble Supreme Court and that petition along with a group of petitions is being heard and the next date is likely to be 13 March 2023. Leaned Counsel submits that once the core issue is decided, the Petitions in this group can be decided on the basis of the same. The learned counsel for the Association reiterates the submission that the group be deferred.
5. There is a consensus amongst the learned Counsel that the issue as above which is pending in the Hon’ble Supreme Court does arise in the present group of petitions, but they state that the group of petition can proceed further. We find that since very issue is being considered and group of Petitions is being listed before the Hon’ble Supreme Court immediately, appropriate course of action would be to defer the hearing.
5. A grievance is made on behalf on the learned counsel representing the Buyers that the interim stay granted in this petition is affecting them and while granting interim relief, Petitioners-sellers did not place all the facts before the Court. The grievance made is that the Respondent-State is proceeding to assess the buyers to their prejudice.
6. Learned Counsel representing the buyers submits that the interim relief should not be continued and should be vacated.
7. As on today, we do not find any recovery notice issued to the buyers. If such recovery notices are issued by the Respondent-State, it is open to them to apply in the pending petitions, which application will be decided on its own merits.
8. In light of this position, stand over to 7 June 2023 to be listed under the caption “For Directions”
9. Ad-interim order operating in these Petitions to continue till the next date with the above clarification and liberty to the Buyers in this group as above.
10. Reply and rejoinder, if any, be filed before the next date. Also the amendments, if not carried out, the same be carried out before the next date.
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