U.P. Distillers' Association Through It's Secretary General Versus Union Of India Through Secy. Finance & Revenue New Delhi & Ors.
GST
2018 (5) TMI 274 – ALLAHABAD HIGH COURT – 2018 (12) G. S. T. L. 10 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 20-3-2018
Misc. Bench No. – 7950 of 2018
GST
Mr. Vikram Nath, And Mr. Abdul Moin, JJ.
For The Petitioner : Nikhil Agrawal, Vaibhav Pandey
For The Respondent : C.S.C., A.S.G.
ORDER
Heard learned counsel for the petitioner, Shri Alok Mathur, learned counsel for the respondent No.1, Shri H.P. Srivastava, learned Additional Chief Standing Counsel for the State-respondent Nos. 2 to 5.
The petitioner is an Association of the Distillers situate in Uttar Pradesh and has filed this petition seeking to restrain the respondents from levying Administrative Charges on sale and supply of molasses under the provision of the U.P. Sheera Niyantran Adhiniyam, 1964.
Molasses is an important raw material for distillers, which produces ind
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ated 7.9.1981 issued under the provisions of the U.P. Sales Tax Act, 1948 now U.P. Trade Tax Act read with Section 21 of the U.P. General Clauses Act, 1904 shall not realise any trade tax from the petitioner on the purchase of molasses.
20. The opposite parties shall refund the amount of trade tax which was realised by them through the Sugar Mills subsequent to 10.03.2003. The petitioners shall submit the details of the tax which the opposite parties have realised from them subsequent to 10.03.2003 within one month from today and the opposite parties shall refund the amount of trade tax to the petitioners within two months thereafter.”
The matter was carried to the Supreme Court by the State of U.P. by way of Special Leave to Appeal (Civil) No. 16261 of 2009 [State of U.P. & Anr. Vs. M/S SAF Yeast Company Private Ltd.]. The Supreme Court by order dated 8.3.2010, after condoning the delay, granted leave and passed the following interim order:-
“Delay condoned.
Leave granted.
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e outcome, the tax revenue could be realized.
Some of the orders passed by the different Division Bench have been placed before us, in which the direction was that during pendency of these Special Appeals before the Hon. Supreme Court, the State was restrained from realizing tax on molasses, but would keep an account of molasses' purchased/sold during the pendency of the Appeal so that in any case the Appeal fails by the judgment of the Hon. Supreme Court, the petitioner shall be held liable to pay tax in accordance with law.
These orders have been referable to Writ Petition No. 3089 (M/B) of 2014 [M/S Lords Distillery Ltd.Through its Manager Vishal Tyagi Vs. State of U.P. through Principal Secretary, Institutional Finance/Tax and Registration] and Writ Petition No. 6925 (M/B) of 2013 [A.K. Agro Industries, Through Its Prop. Sri Kalindi Tewari Vs. State Of U.P. Thr. Prin. Secy. Institutional Finance & Another].
Goods and Service Tax has been implemented with effect from 1.7.2017
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entation of the new Acts, GST alone is to be applied on supply or services of all goods.
Before us, the contention is that once the realization of tax has been subject to maintenance of separate accounts, the demand by the respondents of GST, as also Administrative Charges, would again amount to double taxation, although as of date the demand of Trade Tax has already been quashed by this Court in the case of M/S SAF Yeast Company Private Ltd. (Supra).
The petitioners have prayed for stay on the demand of Administrative Charges, as they are ready and willing to pay the GST at the rate of 28% (14% Central GST and 14% UPGST). However, they agree to maintain separate accounts and even the State would make an endeavour to keep a separate account for sale/purchase/supply of molasses.
The matter requires consideration.
All the respondents pray for and are granted a month's time to file counter affidavit. The petitioner will have two weeks thereafter to file rejoinder affidavit.
Sinc
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