2024 (2) TMI 852 - HC - GST

Making prayer for direction upon the authority concerned to not to levy and collect tax on petroleum and diesel - reliance placed on Article 279A(5) of the Constitution of India by contending that the GST on petroleum, crude and high-speed diesel can be levied only after recommending the date on which the same will be leviable by the GST council - HELD THAT - This writ petition is disposed of by setting aside the aforesaid impugned order dated 29th November, 2023 and the matter is remanded back to the respondent adjudicating authority concerned to pass a fresh order in accordance with law after giving opportunity to the petitioner to produce the relevant documents which have been indicated in paragraph 7.6 of the impugned order and if petitioner produces the documents indicated in the impugned order which according to the adjudicating authority have not been produced during the adjudication proceeding in that event petitioner shall not be asked to pay CGST on the petroleum and diesel, particularly by taking into consideration that the CGST council till date has not notified the date from which the aforesaid products will be leviable for CGST. Petition disposed ff by way of remand.

Summary

Issues involved:
The issues involved in the judgment include challenging an impugned order under the CGST Act related to the levy of tax on petroleum and diesel, and the requirement of producing authentic documents to support the claim for non-leviability of CGST on the products.

Challenging the Impugned Order:
The petitioner challenged the impugned order dated 29th November, 2023, passed by the adjudicating authority under the CGST Act. The challenge was based on the contention that GST on petroleum, crude, and high-speed diesel can only be levied after a recommendation by the GST council. It was argued that as per Article 279A(5) of the Constitution of India, no specific date had been recommended by the council for levying GST on these products. Additionally, the petitioner claimed that the necessary documents related to the sale of petroleum and diesel were not adequately produced before the adjudicating authority, except for a certificate issued by a Chartered Accountant.

Respondent's Justification:
The respondent representing the CGST authority justified the impugned order by stating that the petitioner failed to provide authentic documents during the proceedings to support the claim for non-leviability of CGST on the products in question. It was emphasized that without proper documentation, no benefit of non-leviability of CGST could be granted, especially for other petroleum products dealt with by the petitioner.

Judgment and Directions:
After considering the submissions from both parties, the writ petition was disposed of by setting aside the impugned order and remanding the matter back to the adjudicating authority. The authority was directed to pass a fresh order in accordance with the law, providing the petitioner with an opportunity to produce the relevant documents as indicated in the previous order. If the petitioner submits the required documents, they shall not be required to pay CGST on petroleum and diesel, taking into account the fact that the GST council had not notified a specific date for levying CGST on these products. The adjudication process was mandated to be concluded within four weeks from the date of communication of the order, with a clear instruction to avoid unnecessary adjournments for the petitioner.

Conclusion:
The writ petition challenging the impugned order related to the levy of CGST on petroleum and diesel was ultimately disposed of with the above observations and directions, ensuring a fair opportunity for the petitioner to present the necessary documents for consideration by the adjudicating authority.