2022 (12) TMI 817 - HC - GST

Classification of goods - printed binded voter lists/voters slip, described as a book - whether exempt under the head 4901, or is not a book and is liable to tax under the head 4911? - N/N. 02 of 2017- Central Tax (Rate) dated 28.06.2017 - violation of principles of natural justice - HELD THAT - In order to counter the submissions, it has been argued that the orders have been passed in violation of the principles of natural justice as certain documents were not supplied and that they are without jurisdiction inasmuch as the State cannot demand tax on behalf of the Central Government which accepts that the binded voter lists are in the nature of books and exempt from the tax. Be that as it may be, the matters require consideration on exchange of affidavits - petition allowed by way of remand.

Summary

Issues:
Challenge to three assessment orders under GST Act and RVAT Act regarding taxability of binded voter lists as books.

Analysis:
The writ petition challenges three assessment orders dated 11.11.2022 under the GST Act and the RVAT Act. The petitioner, engaged in trading printed binded voter lists, argues that these lists should be considered books exempt from tax under Notification No.02 of 2017. The main issue is whether these binded voter lists qualify as books under heading 4901 for tax exemption or fall under heading 4911 for taxation. The petitioner contends that in Maharashtra, similar binded voter lists are treated as books, supported by the Central Government's audit report. The court acknowledges the need for deliberation on this issue.

The respondents are granted two weeks to file a counter affidavit, followed by one week for the petitioner to file a rejoinder-affidavit. The petitioner seeks an interim order, opposed by the respondents citing the issue as settled by a superior court, which the petitioner disputes, claiming a different decision by a Larger Bench. The respondents argue the writ petition's maintainability due to alternative appeal remedies under the GST Act and RVAT Act. The petitioner alleges violations of natural justice and lack of jurisdiction in the tax demands, as the State cannot tax items accepted as books by the Central Government.

The court schedules the petition for admission/final disposal on 04.01.2023 after considering the arguments presented in the affidavits. During this period, the petitioner is allowed to file appeals without the 10% deposit requirement, and the respondents are restrained from taking coercive actions on the disputed tax amount. The respondents agree to accept physical appeals with waiver applications from the petitioner.

In conclusion, the court directs a detailed examination of whether binded voter lists should be taxed as books or under a different category, emphasizing the need for a thorough review of the facts and legal arguments before making a decision.