2018 (3) TMI 1451 - HC - GST

Levy of GST - Petrol and Diesel - case of petitioner is that the petroleum and diesel should be brought forthwith within the ambit of Goods and Service Tax, so that the selling price would drastically reduce and as a consequence, the prices of the Goods and essential commodities would come down, which would ultimately benefit to the common people, especially poor and down trodden. Whether this Court in exercise of its Jurisdiction under Article 226 of the Constitution of India can issue any positive direction to the Goods and Central Services Tax council to bring petrol and diesel prices within the ambit of Goods and Service Tax? Held that - In the considered opinion of this Court, it cannot issue any direction for the reason that it is for the Goods and Service Tax council to take a call in that aspect and Section 9(2) of the Act also deals with the Central Tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel - The Goods and Service Tax council is having representation of the State Governments also and therefore, their views have also to be elicited, before the Goods and Service Tax council take a call as to bring the petrol and diesel prices within the ambit of Goods and Service Tax. It is a well-settled position of law that it is not for the Court to determine whether a particular policy or particular decision taken in the fulfillment of that policy is fair. It is only concerned with the manner in which those decisions have been taken and the extent of the duty to act fairly will vary from case to case. It is for the Central Government to act on the recommendations of the Goods and Service Tax council as to bring the petroleum and diesel prices within the ambit of the Goods and Service Tax, this Court is not in a position to issue any positive direction to the respondents to consider the prayer sought for by the petitioner. Petition dismissed - decided against petitioner.

Summary

Issues:
1. Whether the court can issue a direction to bring petrol and diesel under the Goods and Service Tax (GST) ambit.

Analysis:
1. The petitioner filed a Writ Petition as a 'Public Interest Litigation' stating that the Goods and Service Tax is based on two parliamentary Acts, aiming for "One Nation One Tax." The petitioner's grievance was that petrol and diesel were not under GST, leading to high prices despite low international crude oil rates.

2. The petitioner argued that the increase in fuel prices directly impacts the common man by raising commodity prices. The petitioner urged for petrol and diesel to be included in GST, highlighting a representation submitted to the respondents without a response, leading to the Writ Petition.

3. The Court noted the Central Goods and Service Tax Act, 2017, and the provisions related to the levy and collection of tax, including specific mention of petroleum products. Section 9(2) of the Act addresses the levy of central tax on petroleum products.

4. The Court emphasized the role of the Goods and Service Tax council, comprising State Governments' representation, in making decisions regarding bringing petrol and diesel under GST. It mentioned the Government's power to exempt goods or services from tax based on public interest and council recommendations.

5. The Court cited legal principles stating that courts can only interfere with policy decisions if found arbitrary, based on irrelevant considerations, malafide, or against statutory provisions. It clarified that the Central Government, guided by the GST council, has the authority to decide on including petroleum products in GST.

6. Ultimately, the Court concluded that it cannot issue a positive direction to consider the petitioner's prayer to bring petrol and diesel under GST. The Writ Petition was dismissed with no order as to costs, highlighting the Government's prerogative in such matters based on council recommendations.

This comprehensive analysis of the judgment showcases the legal reasoning and principles applied by the Court in addressing the issue raised in the Writ Petition regarding the inclusion of petrol and diesel under the Goods and Service Tax ambit.