On 16.10.2014 Hon’ble Punjab and Haryana High court issued notice of motion to the Centre and State Governments to appear on 05.12.2014 in the case of M/s Ramneek Beer Bar & Restaurant vs. Union of India and others (CWP No. 21365 of 2014). The case was heard by Bench Comprising of Honourable Judges Mr. Rajiv Bhalla & Mr. Amit Rawal.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Firstly, I argued on challenging the constitutional validity of applicability of service tax in restaurants and the second argument is on the basis that the union government is charging service tax on 40% value then why the Punjab Government is charging VAT on 100% value, it has to be on 60, if it is applicable, because both taxes are mutually exclusive as held by the Hon’ble Supreme Court in the case of Imagic Creative. The case is next listed on 05.12.2014.
Hope, if the constitutionality would be upheld, the relief on double taxation by Punjab VAT will allowed.