Home › GST Law › UOI v. Mohit Mineral (P) Ltd (2019) 2 SCC 599/AIR 2018 SC 318/(2018) 69 GST 743 (SC)

UOI v. Mohit Mineral (P) Ltd (2019) 2 SCC 599/AIR 2018 SC 318/(2018) 69 GST 743 (SC)

Goods and Services Tax (Compensation to States) Act, 2017
S.11: Other provisions relating to Cess- GST Compensation Cess – Valid – Traceable to Articles 246A, 248 as well as 270 [Constitution of India Arts , 39, 245, 246(1) 246A, 248, 254, 269, 270, 271, 366(26A )

Facts

Goods and Services Tax (Compensation to States) Act, 2017 was challenged as being unconstitutional.

 

Issue

(1)  Whether Act is beyond legislative competence of Parliament?  (2) Whether  same taxing event can be basis of normal GST as well as Compensation Cess? (3) Whether clean energy cess paid before GST can be set off against Compensation Cess?

 

View

(1)    The Act is traceable to both Articles 246A which provides for levy of GST     and Article 248 which is residuary power of Parliament to levy any tax as well as Article 270 which allows levy of any cess for specific purposes by Parliament (2) Compensation Cess being traceable to Article 246A, there    is no bar in Constitution for two taxes being levied on the same taxable event if the power is available to levy each of those taxes (3) Set off is legislative policy and in absence of a statutory provision allowing clean energy cess paid before 20.6.2017 as set off against the Compensation Cess, the Court cannot grant any such set offthrough judicial orders.

 

Held

The Goods and Services Tax (Compensation to States) Act, 2017 is constitutional. (CA No. 10177 of 2018 Arising out of SLP (C) No. 2017 & Ord dt. 3-10-2018)

Editorial
: Though the decision is otherwise unexceptionable, the Court  has ignored the amendment made to Article248 by the 101st Constitution Amendment Act which makes the residuary power of legislation “subject to Article 246A”. The counsel had specifically pointed out to the Court that this amendment narrowed down the scope of Article 248 in relation to Goods and Services Tax,     but the amendment has not been commented upon by the Court.

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