Case Title | K.K. Ramesh Vs. Union Of India |
Court | Madras High Court |
Honorable Judges | Justice M.Sathyanarayanan Justice R.Hemalatha |
Citation | 2018 (03) GSTPanacea 12 HC Madras W.P (MD) No.5484 Of 2018 |
Judgement Date | 15-Mach-2018 |
The present Writ Petition has been initiated as a ‘Public Interest Litigation’ by the petitioner, who represents themselves, highlighting various concerns. Primarily, it emphasizes the foundation of the Goods and Service Tax (GST) on two parliamentary Acts: the Integrated Goods and Services Tax Act and the Central Goods and Service Tax Act. These Acts were enacted with the aim of achieving the overarching objective of “One Nation One Tax”. The petitioner underscores that these Acts were passed in April 2017 to streamline taxation processes and create a unified tax system across the nation.
The petitioner in this case is expressing dissatisfaction with the current scenario concerning the Goods and Service Tax (GST) Act, particularly in relation to petrol and diesel. They argue that despite the primary objective of the GST Act being to establish “One Nation One Tax,” petrol and diesel remain outside its purview. Furthermore, the petitioner highlights the daily fixation of prices for these fuels, which have now reached an all-time high, despite the significantly low international market prices for crude oil.
The petitioner, representing themselves in the case, has brought attention to the court’s attention through affidavits and supporting documents. They argue that the substantial increase in the selling price of petroleum products directly impacts the common person, particularly due to the reliance on road and service transport for the distribution of goods. Any hike in fuel prices inevitably leads to an increase in the selling prices of commodities, especially essential ones.
The petitioner emphasizes the urgency of bringing petrol and diesel prices under the ambit of GST, suggesting that this would mitigate the adverse effects on the general populace. They note that despite submitting a representation to the respondents on February 16, 2018, and receiving acknowledgment, no response has been received, prompting them to resort to filing this Writ Petition in court.
In a legal proceeding, Mr. V. Kathirvelu, a knowledgeable Assistant Solicitor General of India, supported by Mr. J. Jeyakumar, a proficient Central Government Standing Counsel, acknowledges receipt of the notice on behalf of respondents 1 to 5. These respondents likely represent entities or authorities involved in the matter at hand. Mr. Kathirvelu requests additional time to obtain instructions regarding the measures taken to incorporate petroleum products into the framework of the Goods and Services Tax (GST).
This statement suggests that there is ongoing legal or administrative action concerning the taxation of petroleum products within the ambit of the GST, a comprehensive indirect tax system implemented in India. The involvement of legal representatives on behalf of the respondents indicates a formalized process, possibly involving a court case or regulatory inquiry.
The need for time to gather instructions implies that there may be complexities or developments regarding the inclusion of petroleum products under the GST regime. This could involve considerations such as tax rates, administrative procedures, or regulatory compliance.
Overall, this summary encapsulates a legal scenario involving the taxation of petroleum products under the GST in India, with the respondents represented by legal professionals seeking time to provide necessary information or instructions regarding the matter.
The court has meticulously considered the arguments presented by both sides and has examined the evidence submitted.
It refers to the Central Goods and Service Tax Act of 2017, also known as ‘the Act,’ which was enacted to establish provisions for imposing and collecting taxes on the intra-state supply of goods or services by the Central Government, along with related matters.
Section 2(36) of the Act defines the term “Council” as the Goods and Services Tax Council, established under Article 279A of the Constitution of India.
Section 9 of the Act pertains to the “Levy and Collection” of taxes and is pertinent to quote here: “Levy and Collection: 9 (1) Subject to the provisions of sub-Section (2), there shall be levied a tax called the central goods and services tax on all intra-state…”
This excerpt from the Act sets out the framework for the imposition and collection of taxes on intra-state transactions. It indicates that a tax, known as the central goods and services tax, will be imposed on such transactions, subject to certain provisions outlined in sub-Section (2).
The court’s engagement with these sections of the Act suggests that the case under consideration likely involves issues related to the interpretation or application of these provisions. It indicates a legal analysis of the statutory framework governing the taxation of intra-state supplies of goods or services under the GST regime in India.
The provided text elaborates on the provisions outlined in Section 9 of the Central Goods and Service Tax Act, 2017, detailing the levy and collection of taxes on intra-state supplies of goods or services.
Section 9(1) specifies that a tax called the central goods and services tax shall be imposed on all intra-state supplies of goods or services, except for alcoholic liquor for human consumption. This tax is to be calculated based on the value determined under Section 15 and at rates not exceeding twenty percent. The rates are to be notified by the government upon the recommendations of the Goods and Services Tax Council. Taxable persons are responsible for collecting and paying this tax.
Section 9(2) addresses the central tax on specific petroleum products such as petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas, and aviation turbine fuel. The levy of this tax becomes effective from a date notified by the government based on the recommendations of the GST Council.
Section 9(3) empowers the government, upon the recommendations of the Council, to specify categories of goods or services for which the tax shall be paid on a reverse charge basis by the recipient. In such cases, the recipient is treated as the person liable for paying the tax, and all provisions of the Act apply accordingly.
Section 9(4) states that if a supplier who is not registered supplies taxable goods or services to a registered person, the recipient shall pay the central tax on a reverse charge basis. Again, the recipient is treated as liable for paying the tax, and the Act applies to them as if they were the supplier.
These provisions grant the government, based on the recommendations of the GST Council, the authority to specify categories for reverse charge taxation and establish mechanisms for tax collection from unregistered suppliers. The text indicates a comprehensive framework for the imposition and collection of central taxes on intra-state supplies, with specific considerations for certain goods and services.
The provided text further elucidates on the provisions within the Central Goods and Service Tax Act, 2017, specifically focusing on the taxation of intra-state supplies of certain categories of services, particularly those facilitated through electronic commerce operators.
Section 9 delineates that the tax on intra-state supplies of specified services shall be borne by the electronic commerce operator if these services are conducted through their platform. This means that the electronic commerce operator is treated as the liable entity for paying the tax on such services. The Act stipulates that all provisions therein apply to the electronic commerce operator as if they were the supplier responsible for the tax concerning the services provided through their platform.
Two provisions are appended to this section to address scenarios where the electronic commerce operator lacks a physical presence in the taxable territory. Firstly, if the operator does not have a physical presence but has a representative in the taxable territory, that representative is held accountable for tax payment. Secondly, if neither the operator nor a representative exists in the taxable territory, the operator must appoint a person within the territory for tax payment, and this appointed person bears the responsibility for tax payment.
Furthermore, Section 11 of the Act deals with the authority’s power to grant exemptions from tax. This section empowers the government, upon the recommendations of the Council, to issue notifications exempting specific goods or services, either completely or subject to specified conditions, from the tax liability. Such exemptions can be granted in the interest of the public, and they may pertain to goods, services, or both, of any designated category.
These provisions outline a comprehensive framework for taxation, particularly concerning intra-state supplies of services facilitated through electronic commerce platforms, as well as the authority’s discretion to grant exemptions from tax for specified goods or services based on public interest considerations.