2014 (5) TMI 177 - HC - VAT and Sales Tax

Transit fee - Method of Realisation of Transit fee Transit Fee on transportation/imports of misc. coals Transit Fee Under the U.P. Transit of Timber and Other Forest Produce Rules, 1978 Held that - In terms of the directions issued by the Supreme Court on 29 October 2013, the realisation of the transit fee as directed by the Supreme Court will be subject to the final decision of the Supreme Court in the pending Special Leave Petitions against the judgment of this Court - The writ petition is disposed of.

Summary

Issues:
Petitioner seeking directions on transit fee for sale and purchase of coal, reliance on Supreme Court interim order, validity of transit fee amendments, consideration of pending special leave petitions.

Analysis:
The petitioner, a firm registered under the U.P. Value Added Tax Act dealing in coal and coke, filed a writ petition seeking directions against charging transit fee under the U.P. Transit of Timber and Other Forest Produce Rules, 1978 for coal transactions. The petitioner relied on a Supreme Court interim order staying the demand for transit fee on forest produce and various interim orders by the High Court following the Supreme Court's directives. The Court noted that similar issues were addressed in previous cases connected to the present matter, emphasizing the pending Special Leave to Appeal in the Supreme Court challenging those judgments.

In previous cases, the High Court upheld the validity of the 3rd amendment to the U.P. Transit of Timber and Other Forest Product Rules, 1978, which increased transit fees, but struck down the 4th and 5th amendments that further enhanced the fees. The Supreme Court, in an order dated 29th October, 2013, directed the rationalization of interim orders related to transit fee recovery for forest produce within U.P., specifying the conditions for recovery and potential refunds based on the final outcome of pending petitions. The modified order allowed the State to recover transit fees in accordance with the 3rd amendment until the final decision of the Court.

Considering the previous judgments and the modifications made by the Supreme Court, the High Court declined to admit the present writ petition, citing that the issues had already been addressed in prior decisions. The petitioner's request for similar benefits as per the Supreme Court's modified order was granted, disposing of the writ petition with directions aligned with the Supreme Court's order. The realization of transit fees was to be in accordance with the Supreme Court's directives, subject to the final decision in the pending special leave petitions challenging the High Court's judgments.