2023 (8) TMI 840 - HC - GST

Constitutional Validity of Rule 42(3) of the CGST Rules 2017 inserted notification No. 16 of 2019-Central Tax dated 29th March, 2019 - Section 73 of the WBGST Act - HELD THAT - Since the constitutional validity of both the central and State Rules have been challenged in the matter petitioner shall serve a copy of the writ petition upon the learned Advocate General and the Additional Solicitor General within a week from date. Any final order passed on the impugned show-cause notices shall abide by the result of the writ petition. Liberty is granted to the petitioner to implead the Commissioner of CGST, Kolkata (North), and a copy of the writ petition shall be served upon him - List this matter for final hearing in the monthly list of September, 2023.

Summary

Issues Involved: Challenge to the constitutional validity of Rule 42(3) of the CGST Rules 2017 and other provisions under WBGST Act, interference with show-cause notice u/s 73 of the WBGST Act, extension of time for filing reply to show-cause notice, filing of affidavits, impleadment of Commissioner of CGST.

Constitutional Validity of Rule 42(3) of the CGST Rules 2017 and other provisions under WBGST Act:
The petitioner sought a declaration of Rule 42(3) of the CGST Rules 2017 inserted by notification No. 16 of 2019-Central Tax as ultra vires of the Constitution, along with challenging various other provisions of the Rules under the WBGST Act. The Court directed that the challenge to the constitutional validity of these provisions would be considered and decided only after affidavits are called for from the respondents. Respondents were given four weeks to file affidavit-in-opposition, and the petitioner was allowed two weeks to file a reply thereafter. The matter was listed for final hearing in the monthly list of September, 2023.

Interference with Show-Cause Notice u/s 73 of the WBGST Act:
The petitioner had challenged an impugned show-cause notice dated 10th May, 2023, issued by respondent No. 3 u/s 73 of the WBGST Act. The Court declined to interfere with the show-cause notice but extended the time for filing a reply by two weeks. It was specified that if the reply was filed within the stipulated time, it would be considered in accordance with the law, and a reasoned order would be passed after providing an opportunity of hearing to the petitioner or its authorized representatives within four weeks from the date of receipt of the reply.

Filing of Affidavits:
In the context of the challenge to the constitutional validity of both central and State Rules, the Court directed the respondents to file affidavit-in-opposition within four weeks, with the petitioner allowed to file a reply within two weeks thereafter. The Court also mandated the petitioner to serve a copy of the writ petition upon the learned Advocate General and the Additional Solicitor General within a week from the date. Any final order on the impugned show-cause notices was to abide by the result of the writ petition.

Impleadment of Commissioner of CGST:
Lastly, the petitioner was granted liberty to implead the Commissioner of CGST, Kolkata (North), with a direction to serve a copy of the writ petition upon him.