Kanagasabapathy Sundaram Pillai v. Union Govt. Of India
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION PUBLIC INTEREST LITIGATION (L) NO.65 OF 2017 Dr. Kanagasabapathy Sundaram Pillai Founder, MY "Integrating Society India Net" NGGO, Shop No.1 and 2, Kantharia Mansion, C.S.312, Dharavi Cross Road, Dharavi, Mumbai 400017 ......Petitioner
Versus
Union Govt. of India, Through, The Chairman, Central Board of Excise and Customs "CBEC", New Delhi 110001 .......Respondent Petitioner present in person.
Mr. Anil C. Singh, Addl. Solicitor General with Mr. P.S.Jetly, Mr. Sham V. Walve and Ms. Geetika Gandhi, Advocates for Respondent.
CORAM :
CORAM : SMT. V.K. TAHILRAMANI, & SMT. V.K. TAHILRAMANI, & SANDEEP K. SHINDE, JJ.
SANDEEP K. SHINDE, JJ.
RESERVED ON :
RESERVED ON :
June 29, 2017.
June 29, 2017.
PRONOUNCED ON: July 11, 2017.
PRONOUNCED ON: July 11, 2017.
JUDGMENT [Per Shri Sandeep K. Shinde, J.] :
JUDGMENT [Per Shri Sandeep K. Shinde, J.] :
The decision of respondent to implement Goods The decision of respondent to implement Goods and Services Tax ('
and Services Tax ('GST'
GST' for short) with effect from for short) with effect from
* 2/8 * 902-PILST-65-2017.doc 1.7.2017 is subject matter of challenge in this petition on 1.7.2017 is subject matter of challenge in this petition on the following grounds:
the following grounds:
(i) (i) That implementation is without That implementation is without parliamentary sanction and parliamentary sanction and implementation in midst of the financial implementation in midst of the financial year, is not valid;
year, is not valid;
(ii) That the preparations are not well to That the preparations are not well to adopt the new system as the rates of adopt the new system as the rates of CGST done recently just a week back for CGST done recently just a week back for which many representation from the public which many representation from the public are not yet replied/rectified;
are not yet replied/rectified;
(iii) (iii) That the States / UTs many are not That the States / UTs many are not yet decided, not made laws and not yet decided, not made laws and not declared their proposed rates, not declared their proposed rates, not prepared well for smooth implementations;
prepared well for smooth implementations;
(iv) (iv) That the compensation for the first That the compensation for the first quarter of the financial year not paid apart quarter of the financial year not paid apart from the arrears of many from the arrears of many aids/schemes/sharing and the states & UTs aids/schemes/sharing and the states & UTs will become financially critical and will become financially critical and unstable.
unstable.
* 3/8 * 902-PILST-65-2017.doc The petitioner has expressed his concerns The petitioner has expressed his concerns in the matter of implementation of acts in the matter of implementation of acts and extent of implementation of SGST in and extent of implementation of SGST in its model form across the country by its model form across the country by States and Union Territories.
States and Union Territories.
Petitioner expressed the doubt as to whether Acts Petitioner expressed the doubt as to whether Acts in their current form will be effective in reducing the in their current form will be effective in reducing the regulatory and administrative hurdles.
regulatory and administrative hurdles.
He, therefore, submitted that in the He, therefore, submitted that in the circumstances it is advisable to make an automatic circumstances it is advisable to make an automatic software interfaced with the Trade Tax Automated Bank software interfaced with the Trade Tax Automated Bank Account (TTABA) and suggested such other measures for Account (TTABA) and suggested such other measures for effective implementation of GST.
effective implementation of GST.
Petitioner, thus, prayed that implementation of Petitioner, thus, prayed that implementation of GST be deferred till all legal flaws are removed, and/or till GST be deferred till all legal flaws are removed, and/or till full decision of final rates for all items including State full decision of final rates for all items including State surcharge items preparation is done by all India states and surcharge items preparation is done by all India states and Union Territories.
Union Territories.
The petitioner has prayed for following reliefs: The petitioner has prayed for following reliefs:
* 4/8 * 902-PILST-65-2017.doc (a) (a) Direct the respondent to defer the implementation till Direct the respondent to defer the implementation till the legal sanction for implementation, the decided rates on the legal sanction for implementation, the decided rates on all varied commodities etc. is taken from the parliament in all varied commodities etc. is taken from the parliament in Budget session of 2018 in February, 2018 for initiation of Budget session of 2018 in February, 2018 for initiation of the new proposal from 1 the new proposal from 1st st April, 2018;
April, 2018;
(b) (b) Direction to utilize the period for the action on anti Direction to utilize the period for the action on anti profiteering laws and on all shell companies, illegal profiteering laws and on all shell companies, illegal duplicate manufacturing companies, unlawful commercial duplicate manufacturing companies, unlawful commercial activities for tax evading/money laundering etc by the activities for tax evading/money laundering etc by the records of existing tax system thus preventing escape of records of existing tax system thus preventing escape of those by the pretext in change records in new tax system; those by the pretext in change records in new tax system; ( c ) ( c ) To give publicity of all procedure to make the To give publicity of all procedure to make the traders familiar and they can be given facilities of traders familiar and they can be given facilities of softwares interfaced with the trade account as per the Tax softwares interfaced with the trade account as per the Tax registration and the licences given for trades & awareness registration and the licences given for trades & awareness education of public by our NGGO trained Senior citizen education of public by our NGGO trained Senior citizen volunteers from 2001 census family based as "GST volunteers from 2001 census family based as "GST Personal Assistant (GSTPA)" (as in case of Direct Tax "TPA") Personal Assistant (GSTPA)" (as in case of Direct Tax "TPA") at the cost of traders be posted.
This will create 50 crore 4at the cost of traders be posted.
* 5/8 * 902-PILST-65-2017.doc to achieve less cash/cashless society;
to achieve less cash/cashless society;
(d) Directing to insist get a dedicated Trade-Bank-Account, (d) Directing to insist get a dedicated Trade-Bank-Account, KYC based on valid trade licences only not by registration KYC based on valid trade licences only not by registration certificates or individual basis for trade.
certificates or individual basis for trade.
(e ) (e ) Education for awareness and informations as to be Education for awareness and informations as to be provided by periodically in medias especially now regarding provided by periodically in medias especially now regarding the new tax system.
the new tax system.
That to ensure implementation of 101 That to ensure implementation of 101st st Amendment to the Constitution of India, the following 4 Amendment to the Constitution of India, the following 4 (Four) Acts were enacted:
(Four) Acts were enacted:
(I) (I) The Central Goods and Services Tax Act, The Central Goods and Services Tax Act, 2017.
2017.
(ii) (ii) The Integrated Goods and Services Tax The Integrated Goods and Services Tax Act, 2017.
Act, 2017.
(iii) (iii) The Goods and Services Tax The Goods and Services Tax (Compensation to States) Act, 2017.
(Compensation to States) Act, 2017.
(iv) (iv) The Union Territory Goods and Services The Union Territory Goods and Services Tax Act, 2017 and received presidential Tax Act, 2017 and received presidential assent on 6.4.2017.
assent on 6.4.2017.
In view of the fact aforesaid, contention of the In view of the fact aforesaid, contention of the petitioner that decision to implement the aforesaid Acts petitioner that decision to implement the aforesaid Acts
* 6/8 * 902-PILST-65-2017.doc from 1.7.2017 is without authority of law lacks substance. from 1.7.2017 is without authority of law lacks substance. In fact, herein levy and collection of taxes has sanction of In fact, herein levy and collection of taxes has sanction of law in terms of Article 265 of the Constitution of India. law in terms of Article 265 of the Constitution of India. As against this, the learned ASG appearing for As against this, the learned ASG appearing for the Union of India submitted thus:
the Union of India submitted thus:
(i) (i) Thirty State legislatures have passed Thirty State legislatures have passed the State Goods and Services Tax Act, 2017.
the State Goods and Services Tax Act, 2017.
(ii) (ii) Necessary rules have been framed and Necessary rules have been framed and notified.
notified.
(iii) (iii) Over 65 lakh taxpayers have already Over 65 lakh taxpayers have already migrated to GST network and obtained migrated to GST network and obtained registrations.
registrations.
(iv) (iv) Rates of taxes have been notified.
Rates of taxes have been notified.
(v) (v) GST Seva Kendras have been set up at GST Seva Kendras have been set up at every Commissionerate, Division and Range. every Commissionerate, Division and Range. They are answering all questions of the tax They are answering all questions of the tax payers, and will continue to do so. A Nodal payers, and will continue to do so. A Nodal Officer has been designated at each Kendra for Officer has been designated at each Kendra for this purpose. States are following similar this purpose. States are following similar procedure.
procedure.
(vi) (vi) Administrative machinery is in place.
Administrative machinery is in place.
Officers of the Central Excise, Service Tax and Officers of the Central Excise, Service Tax and States Value Added Tax will be implementing States Value Added Tax will be implementing GST.
GST.
(vii) (vii) Everything is now put on the Public Everything is now put on the Public Domain.
Domain.
* 7/8 * 902-PILST-65-2017.doc (viii) (viii) 60,000 officers in Central and State 60,000 officers in Central and State Governments have been trained in GST Law. Governments have been trained in GST Law. The facts narrated by the learned ASG thus, The facts narrated by the learned ASG thus, indicate that respondents have taken all steps indicate that respondents have taken all steps to implement New Tax System including to bring to implement New Tax System including to bring awareness amongst citizens.
awareness amongst citizens.
We have perused the petition and the written We have perused the petition and the written submissions submitted by the learned ASG. In our view, submissions submitted by the learned ASG. In our view, petitioner cannot urge and/or seek directions to the petitioner cannot urge and/or seek directions to the respondents to postpone the decision to implement GST respondents to postpone the decision to implement GST with effect from 1.7.2017, for simple reason that herein with effect from 1.7.2017, for simple reason that herein levy and collection of taxes on goods and services has levy and collection of taxes on goods and services has sanction of law. That from written submission, it is much sanction of law.
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effectively.
In view of these facts, we are not inclined to In view of these facts, we are not inclined to entertain PIL and the same is dismissed.
entertain PIL and the same is dismissed.
(SANDEEP K. SHINDE, J) (SANDEEP K. SHINDE, J) (SMT. V.K. TAHILRAMANI, J) (SMT. V.K. TAHILRAMANI, J)