2020 (8) TMI 208 - HC - GST

Levy of 1% court fee on filing of Appeal before the appellate authority under GST - The constitutional validity of Section 76 of the Kerala Court Fees and Suit Valuation Act, 1959 as extended to GST laws - Levy of non-discriminatory tax per se constitute infraction of Article 301 of the Constitution of India - HELD THAT - The notification cannot be seen to be in violation of Article 14 or suffering from the character of tax. Petition dismissed.

Summary

Issues:
1. Quashing demand for additional court fees in appeal
2. Imposition of levy of additional court fee by State Authority in GST laws
3. Constitutional validity of Section 76 of Kerala Court Fees Act
4. Applicability of additional court fees in appeals under GST laws
5. Reasonable classification and discrimination in court fee imposition

Analysis:

Issue 1:
The petitioner sought to quash the demand for additional court fees raised against the appeal for being deficient in court fees. The appeal was filed under GST laws, and the petitioner argued that the imposition of additional court fees by the State Authority should not apply in the realm of GST laws.

Issue 2:
The Government of Kerala extended powers under Section 76 of the Kerala Court Fees Act, imposing additional court fees at the rate of 1% of the disputed amount. The petitioner contended that this additional fee should not be leviable in appeals filed under GST laws, citing Section 108 of the Kerala Sales Goods Service Tax Act.

Issue 3:
The constitutional validity of Section 76 of the Court Fees Act was challenged, and the court upheld the validity of the notification imposing additional court fees. The court fees payable in appeals were increased from 0.5% to 1% of the amount involved in the dispute.

Issue 4:
The petitioner argued that the rules governing appeals under GST laws do not mandate the remittance of additional court fees. The petitioner highlighted that the objection of authorities to entertain appeals without the additional fee was arbitrary, emphasizing that the additional fee would only amount to a specific sum.

Issue 5:
The court examined the imposition of additional court fees under GST laws in light of Article 304 A and B of the Constitution of India. Referring to a previous judgment, the court discussed the concepts of reasonable classification and discrimination in taxation matters. The court concluded that the notification imposing additional court fees did not violate Article 14 of the Constitution and was not akin to a tax.

In conclusion, the court dismissed the writ petition, upholding the imposition of additional court fees in appeals under GST laws.