Merino Panel Products Limited Vs State of Haryana And Others (Punjab And Haryana High Court)
The petitions challenge three provisos inserted into Section 174(2) of the Haryana Goods and Services Tax Act, 2017 through the Haryana Goods and Services Tax (Amendment) Act, 2021, as well as the Removal of Difficulty Order dated 11.12.2024 issued by the Government of Haryana. The impugned provisos authorize the Government to remove difficulties in giving effect to or saving actions taken under laws repealed by the Haryana GST Act, 2017. The 2024 Order was issued to facilitate implementation of the Haryana Tax on Entry of Goods into Local Areas Act, 2008, which had already been repealed by the 2017 Act.
The petitioners contended that the 2008 Entry Tax Act had originally been enacted under Entry 52 of List II of the Seventh Schedule to the Constitution. The constitutional validity of that Act had been challenged before the High Court and subsequently became the subject of proceedings before the Supreme Court. Following the Constitution (One Hundred and First Amendment) Act, 2016, Entry 52 of List II was omitted. The petitioners argued that after the omission of Entry 52, the State lost legislative competence to impose entry tax or enact provisions facilitating its collection, particularly under a statute that had already been repealed. They contended that the 2021 amendment and the 2024 Removal of Difficulty Order effectively sought to facilitate collection of entry tax despite the State having lost constitutional competence in that field. Reliance was placed on the decision in State of Telangana v. Tirumala Constructions and an interim order passed by the Supreme Court in proceedings relating to similar issues.
