Challenge on Constitutional Validity of Circular imposing Central Tax on Intra-State Supply of Services: SC directs to Approach HC [Read Order]
The SC directed Zonasha Estates and Projects to invoke the writ jurisdiction in the matter regarding the challenge on the constitutional validity of the Circular imposing central tax on intra-State supply of service
Challenge – Constitutional Validity – Circular – Central Tax – Intra-State Supply – Services-SC – HC- TAXSCAN
Challenge – Constitutional Validity – Circular – Central Tax – Intra-State Supply – Services-SC – HC- TAXSCAN
The Supreme Court directed the petitioner, Zonasha Estates and Projects, to approach the High Court by invoking the writ jurisdiction in the matter regarding challenge on the constitutional validity of the Circular imposing central tax on intra-State supply of services.
The petition has been filed under Article 32 of the Constitution of India assailing paragraph ‘2’ of the Notification No.11 of 2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 as being unconstitutional and ultra vires the Constitution of India.
The circular specifies that “In exercise of the powers conferred by sub-section (1) of section 9, subsection (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description.”
Paragraph 2 of the circular notes that in case of supply of service specified in column (3) of the entry at item (i) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.
A Two-Judge Bench comprising Justice BV Nagarathna and Justice Augustine George Masih observed that “We are not inclined to entertain this Writ Petition filed under Article 32 of the Constitution of India. Hence, the same is dismissed reserving liberty to the petitioner herein to file a Writ Petition under Article 226 of the Constitution of India before the High Court, if so advised.”
To Read the full text of the Order CLICK HERE
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