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2023 Supreme(All) 2660
IN THE HIGH COURT OF ALLAHABAD
SAUMITRA DAYAL SINGH, VINOD DIWAKAR, JJ.
Smt. Alka Rajput And Another - Petitioners
Versus
State of U.P. And 2 Others - Respondents
WRIT C NO. 15702 OF 2023.
Decided On : 02-08-2023
For the Petitioner: Nitinjay Pandey
For the Respondent: CSC,Ravi Anand Agarwal,Vivek Saran
Headnote:(A) Goods and Services Tax Act, 2017 - Dispute regarding applicable GST rate of 1% or 8% on services provided by the U.P. Avas Evam Vikas Parishad contrary to Government of India instructions dated 07.05.2019 - The court refrains from adjudicating meritorious aspects and directs verification of applicable tax rate. (Paras 2, 4)
Facts of the case:
The petitioners contest the GST rate charged by U.P. Avas Evam Vikas Parishad, asserting it contradicts official directives from the Government of India.
Findings of Court:
The court has not adjudicated merits but stated that the respondent must ascertain the correct GST rate and communicate it to the petitioners.
Issues: The primary issue is the applicable GST rate (1% or 8%) according to the directive from the central government.
Ratio Decidendi: The court emphasizes proper verification of the GST rate by the respondent based on official communications and regulations under the GST Act, highlighting its non-involvement in merits at this stage.
Result: Writ petition disposed of, directing the respondent to ascertain the correct GST rate.
| Table of Content |
|---|
| 1. dispute over gst rate application. (Para 2) |
| 2. court refrains from adjudicating tax issue. (Para 3) |
| 3. writ petition disposed; action ordered. (Para 4 , 5) |
JUDGMENT
Heard Sri Rohit Upadhayay, Advocate, holding brief of learned counsel for the petitioners; Sri Ravi Anand Agarwal, learned counsel for respondent nos. 2 and 3 and learned Standing Counsel for the State-respondent.
2. The only dispute between the parties is whether the respondent U.P. Avas Evam Vikas Parishad is entitled to charge GST @ 1% or 8%. According to the petitioners, the rate of 8% presently specified by the U.P. Avas Evam Vikas Parishad is contrary to the instructions issued by the Government of India, Ministry of Finance dated 07.05.2019.
3. Reference has also been made to certain internal communications between the different authorities of the U.P. Avas Evam Vikas Parishad. Primarily, rate of tax is to be charged as per notification issued under the GST Act, 2017 (Central & U.P.). Therefore, we are not inclined to adjudicate the said issue at this preliminary stage that too in a dispute brought by the allottee against the U.P. Avas Evam Vikas Parishad.
4. Accordingly, without adjudicating the merits of the case, we dispose of the writ petition with the observation, in case the petitioners place a copy of this order before respondent no.2, the said respondent may ascertain the correct rate of tax applicable to the transaction from the appropriate authority under the GST Act and issue necessary communication to the petitioners in that regard.
5. Such exercise may be completed within a period of three months from today. Any deposit that the petitioners may be required to make at present towards GST liability shall remain stayed subject to the final communication to be made by the respondent no.2.
