2017 (10) TMI 251 - HC - GST

Challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017 - Clean Energy Cess - claim of petitioner is that they have already paid the cess - Held that - To facilitate the implementation of this interim order, it is necessary for the officers of the concerned Department, charged with the responsibility of levying and collecting Clean Energy Cess on coal to depute a team to the Petitioner s business premises to verify on how much of the stock of coal Clean Energy Cess under the FA, 2010 already stands paid - Subject to the Petitioner furnishing to the satisfaction of the officers proof of such payment, the Petitioner will be given credit for such payment and will not be required to make any further payment under the impugned Act for effecting sales and clearances - Till such time the said exercise is completed, no coercive steps will be taken against the Petitioner to recover the levy under the impugned Act - matter on remand.

Summary

Issues:
Challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017
Interim relief regarding payment of Clean Energy Cess under the Finance Act, 2010

Issue 1: Challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017
The petition raised issues challenging the validity of the Goods and Services Tax (Compensation to States) Act, 2017, similar to another case. The court accepted notice for both respondents, directing the filing of counter affidavits and rejoinders. The case was listed for further hearing on a specified date.

Issue 2: Interim relief regarding payment of Clean Energy Cess under the Finance Act, 2010
The petitioner had paid Clean Energy Cess under the Finance Act, 2010, on coal stock before a certain date. The court ruled that no further payment should be required for the coal stock on which the Cess was already paid during the petition's pendency. However, for coal stock without prior Cess payment, any payment under the impugned legislation would be subject to the petition's outcome. The petitioner would be entitled to a refund if successful. Officers were directed to verify the Cess payment on the petitioner's premises. Coercive recovery steps were stayed until verification. Failure to provide satisfactory proof of prior Cess payment would require payment under the impugned Act. The court issued directions for utilizing credit of Cess already paid and filing electronic returns, staying coercive steps for non-filing until a suitable method was developed by the respondent.

This judgment provides detailed interim relief to the petitioner regarding Clean Energy Cess payments and sets guidelines for utilizing credits and filing returns. It also addresses the challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017, highlighting the court's approach to similar issues raised in another case.