2019 (10) TMI 403 - HC - GST

Statutory scope of Amended rule 3(a) in Central Goods and Services Tax Rules, 2017 - charges on commission for services rendered - HELD THAT - Copy of affidavits-in-opposition to be used must be served on petitioners by three weeks hence. Petitioner will be entitled to use affidavit-in-reply on copies served. Affidavits will be accepted on adjourned date. List on 13th September, 2019.

Summary

Issues:
Challenge to amended rule 3(a) in Central Goods and Services Tax Rules, 2017 regarding tax on commission for services rendered.

Analysis:
The petitioners challenge the vires of amended rule 3(a) in the Central Goods and Services Tax Rules, 2017, arguing that it goes beyond the scope of the statute itself. They contend that taxing the aggregate value of bets, which are charged on commission for services rendered, is not permissible. On the other hand, the State, represented by Mr. Majumdar, the Additional Advocate General, relies on the Supreme Court judgment in Health for Millions v. Union of India, emphasizing paragraphs 13 and 14 to support their position.

The Union of India, represented by Mr. Chanda, the Additional Solicitor General, argues against any interim order without a full-fledged hearing. In response, Mr. Chatterjee, the petitioners' counsel, requests an expeditious hearing based on affidavits. The court directs the service of affidavits-in-opposition to the petitioners within three weeks, allowing them to respond with affidavit-in-reply. The acceptance of these affidavits is scheduled for the adjourned date of 13th September, 2019.