2018 (5) TMI 274 – ALLAHABAD HIGH COURT – 2018 (12) G. S. T. L. 10 (All.) – Levy of Administrative Charges – post GST situation – sale and supply of molasses under the provision of the U.P. Sheera Niyantran Adhiniyam, 1964 – 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 – Held that: – A Division Bench of this Court in the case of M/S SAF Yeast Company Private Ltd. Vs. State of U.P. & Anr.[2010 (3) TMI 933 – SUPREME COURT] held that the demand of Trade Tax on purchase of molasses was arbitrary illegal and unjust and accordingly allowed the Writ Petition to that extent.
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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 m
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Charges under the 1964 Adhiniyam as also the Trade Tax under the U.P. Sales Tax Act, 1948, later on replaced by U.P. Trade Tax Act, 1948. Administrative charges was also said to be a tax and as such, petitions were filed before this Court challenging the demand of Trade Tax along with Administrative Charges as being double taxation. A Division Bench of this Court in the case of M/S SAF Yeast Company Private Ltd. Vs. State of U.P. & Anr., reported in 2008 NTN (Vol. 38) Pg. 296 held that the demand of Trade Tax on purchase of molasses was arbitrary illegal and unjust and accordingly allowed the Writ Petition to that extent. The operative portion of the said judgment is as follows as contained in the paragraphs 19 and 20 of the petition:- 19. In the result, the writ petition succeeds and is partly allowed. The opposite parties on the basis of the Notification dated 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
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be entitled to interest which would be imposed on the State at the final hearing of the matter. Shri Nikhil Agrawal, learned counsel for the petitioner states that the matter is still pending before the Supreme Court, which is not disputed by the learned counsel for the respondents. In the meantime, during the pendency of the Special Leave to Appeal (Civil) before the Supreme Court, several petitions were filed, in which this Court disposed off the petitions providing the same protection as granted by the Supreme Court, requiring the parties to maintain separate accounts for sale and purchase of molasses during the pendency of the Special Leave to Appeal (Civil) before the Supreme Court, so that in the event the State succeeds or the Appeal fails, neither the State would be prejudiced nor the distillers would be prejudiced and depending upon the outcome, the tax revenue could be realized. Some of the orders passed by the different Division Bench have been placed before us, in which th
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thwhile to record the existing Entry No. 54 and Entry No. 54 before amendment respectively:- Entry 54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods. Entry 54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92-A of List I. Further, in exercise of powers under Article 246A of the Constitution of India and amended Entry 54 of List II of Seventh Schedule, the State Government and the Central Government enacted the UPGST Act, 2017 and Central GST Act, 2017 respectively. Now, as a result of the aforesaid amendments and implementation 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 h
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