2018 (7) TMI 1099 - HC - GST

Removal of check posts after introduction of GST Regime - Notification dated 24/06/2017 - case of petitioner is that they cannot restrict or obstruct any of the vehicle from asking them to pay tax on the check posts except the GST - Held that - learned Govt. Advocate accepts notice on behalf of the respondents No.1 and 2 and, therefore, no further notice is required and he prays for and is granted four weeks time to file reply. In the meanwhile, they shall take appropriate steps in pursuant to the notification issued on 24/06/2017 and 1/07/2017, by which all the check posts have been abolished, directing the officers for removal of the check posts and file a detailed affidavit regarding compliance of the aforesaid provisions, within a period of two weeks from today - List in the week commencing 6.08.2018.

Summary

Issues:
1. Interpretation of notification abolishing check posts post-GST implementation.
2. Validity of restricting vehicles for tax payment at check posts.

Analysis:

1. The case involves the interpretation of a notification issued by the State Government on 24/06/2017, exercising power under Section 57(1) of the M.P. VAT Act, 2002. The notification rescinded all previous notifications related to the establishment of check posts effective from 1/07/2017, coinciding with the introduction of the GST regime in the country. The petitioner's counsel argued that post this notification, all check posts must be removed as per the GST regime, and vehicles cannot be restricted or obstructed for tax payment at these check posts except for GST. The court issued notices to the respondents and directed them to file a reply within four weeks, emphasizing compliance with the notification and removal of check posts. The matter was listed for further proceedings in August 2018.

2. The central issue here pertains to the validity of restricting vehicles at check posts for tax payment post the introduction of the GST regime. The petitioner's contention was that with the abolishment of check posts as per the notification, any obstruction or restriction on vehicles for tax payment, other than GST, is not permissible. The Government Advocate accepted notice on behalf of the respondents and was granted time to file a detailed reply within four weeks. The court directed the respondents to take necessary steps for the removal of check posts in compliance with the notifications issued in June and July 2017. The respondents were further instructed to file a detailed affidavit regarding the same within two weeks from the hearing date.

In conclusion, the judgment primarily revolves around the implications of a notification abolishing check posts in light of the GST regime and the subsequent legal validity of restricting vehicles for tax payment at these check posts. The court's direction to the respondents to comply with the notification and remove check posts underscores the importance of aligning state regulations with the overarching GST framework, ensuring smooth implementation and adherence to the principles of a unified tax system.