No Consumer Complaint entertainable against Revenue for Levy of Excess GST by Hotel Managements: Madras HC [Read Order]

A Single Bench of the Madras High Court held that consumer complaints are not maintainable against revenue and the Goods and Services Tax (GST) department for levy of excess GST by Hotel Managements.

This Writ Petition was filed for Writ of Mandamus, for forbidding the respondents to grant any relief in favour of any consumers against the petitioner's Department in Tirunelveli Division, in the Consumer Petition before them respectively.

The petitioner is the Joint Commissioner of State Tax, Commercial Taxes Department. The said department is one of the administrations for the State Revenue consolidation, which is constituted by the Sovereign of State.

The contention of the petitioner is that some consumers have filed cases before the second respondent Consumer Forum citing the officials working in the Tirunelveli Commercial Taxes Division as opposite parties. As on date, more than 115 cases were filed and pending before the second respondent - The District Consumer Redressal Forum, Tirunelveli.

The further contention of the petitioner is that the department does not do any service within the meaning of Consumer Protection Act, 1986.

It was further contended by the State Government Pleader A K Manikkam that, “The petitioner is executing the statutory function under the State GST Act. The petitioner is not collecting any GST over and above what is prescribed in the GST Act. If the Hotel Management is imposing any GST beyond the prescription of the Act, the petitioner will not be liable for the same. Therefore, the petition filed by the so-called consumer is beyond the purview of the Act and the Consumer Court is not having any jurisdiction and pass orders against the statutory authorities and against the statutory functions.”

It was observed that, “The petitioner, Commercial Taxes Department, is executing the statutory function under the State GST Act and the petitioner is not collecting any GST over and above what is prescribed in the GST Act.”

It was further noted that, “The consumer may have right against the Hotel Management but not against the Commercial Tax Department. The respondents were directed to forebear from entertaining any petition against the statutory authority.”

It was thus held by the Bench of Justice S Srimathy that, if the Hotel Management is imposing any GST beyond the prescription of the Act, the petitioner (GST Department/Revenue) will not be liable for the same.

To Read the full text of the Order CLICK HERE

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