Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Goods and Services Tax (Compensation to States) Act 2017 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Goods and Services Tax (compensation to States) Act, 2017 (15 of 2017) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Case Disposed Off |
Headnote | Goods and Services Tax (Compensation to States) Act, 2017:Validity of – Held: Is constitutionally valid – Article 270empowers Parliament to levy any cess by law and s. 18 of theConstitution (One Hundred and First Amendment) Act, 2016expressly empowers Parliament shall, by law on the recommendationof the Goods and Services Tax Council, provide for compensationto the states for loss of revenue arising on account of implementationof the goods and services tax and expression law used therein is ofwide import which includes levy of any cess for the above purpose– Thus, the 2017 Act is not beyond the legislative competence of theParliament – Furthermore, the objectives in statements of objectsand reasons of Constitution (One Hundred and First Amendment)Bill, 2014 was conferring concurrent taxing powers upon Parliamentand the State Legislature to make laws for levying goods and servicestax – Article 246A(1) empowers the Parliament to make laws withrespect to goods and services tax – Power to make law is not generalpower related to a general entry rather it specifically relates togoods and services tax – When express power is there to make lawregarding goods and services tax, it cannot be comprehended thathow such power shall not include power to levy cess on goods andservices tax – Thus, the 2017 Act does not violate Constitution (OneHundred and First Amendment) Act, 2016 nor is against the objectiveof Constitution (One Hundred and First Amendment) Act, 2016 –2017 Act is not a colourable legislation – Goods and Services TaxCompensation Cess Rules, 2017 – Constitution of India.Levy of Compensation to States Cess and GST on the sametaxing event – Permissibility of – Held: Two taxes/imposts whichare separate and distinct imposts and on two different aspects of atransaction are permissible as in law there is no overlapping – Goods and Services Tax imposed under the 2017 Act and levy of cess onsuch intra-State supply of goods and services or both as providedunder the Act and such supply of goods and services or both aspart of the Act are two separate imposts in law and are not prohibitedby any law so as to declare it invalid – Thus, it cannot be said thatlevy of Compensation to States Cess on same taxable event is notpermissible – Levy of compensation to States Cess is an incrementto goods and services tax which is permissible in law.Clean Energy Cess paid by the petitioner on the stocks ofcoal till 30.06.2017 – Entitlement to set off the same in payment ofCompensation to States Cess – Held: Clean Energy Cess and theStates Compensation Cess are collected for wholly different purposes– Clean Energy Cess was levied and collected for the purposes offinancing and promoting clean energy initiatives, funding researchin the area of clean energy whereas States Compensation Cess iscollected to provide for compensation to the States for the loss ofrevenue arising on account of implementation of the goods andservices tax – Giving credit or set off in the payment is legislativepol icy which had to be reflected in the legislative scheme –Compensation to States Act, 2017 or Rules framed thereunder doesnot indicate giving of any credit or set off of the Clean Energy Cessal ready paid till 30.06.2017 – Thus, the petitioner not entitled forset off in payment of Compensation to States Cess to the extent hehad already paid Clean Energy Cess. |
Judge | Hon'ble Mr. Justice Ashok Bhushan |
Neutral Citation | 2018 INSC 929 |
Petitioner | Union Of India And Anr. |
Respondent | Mohit Mineral Pvt. Ltd. |
SCR | [2018] 13 S.C.R. 139 |
Judgement Date | 2018-10-03 |
Case Number | 10177 |
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