Gujarat High Court
Paragon Polymer Products Pvt Ltd vs State Of Gujarat Through The ... on 6 September, 2018
Author: Akil Kureshi
Bench: Akil Kureshi, B.N. Karia
C/SCA/13026/2018 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION No. 13026 of 2018
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PARAGON POLYMER PRODUCTS PVT LTD
Versus
STATE OF GUJARAT THROUGH THE COMMISSIONER OF STATE GOODS AND
SERVICE TAX DEPARTMENT
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Appearance :
Mr. N. Venkatraman, Sr Advocate with Mr Nitin K Mehta, Akhil Suresh &
Zakirhusen Belim, Advocates for the PETITIONER
for the RESPONDENT(s) No. 2,3
Mr Pranav Trivedi, AGP on ADVANCE COPY SERVED TO GOVERNMENT for the
RESPONDENT
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CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHI
and
HONOURABLE Mr. JUSTICE B.N. KARIA
6th September 2018
ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
Petitioner has challenged assessment orders passed by the adjudicating authority levying the Value Added Tax at a higher rate than what the petitioner had paid on plastic footwear. There are two elements to this challenge. First is - the petitioner's contention that with the introduction of Goods and Service Tax regime and constitutional amendments, the State Legislature has been deprived of the power to levy tax. Our attention was drawn particularly to Clause 19 of the Constitution [One Hundred and First Amendment] Act, 2006 which saves the existing taxing statutes for a period of one year from 16th September 2016. In that view of the matter, Page 1 of 2 C/SCA/13026/2018 ORDER contention of the counsel for the petitioner was that with effect from 15th September 2017, the States had no authority to levy Value Added Tax and such levy would include assessment and collection of tax also. It was pointed out that in the present case, the notice for audit assessment was issued after 15th September 2017 and obviously, the assessment was completed thereafter. It was pointed out to us that similar challenge is pending before various High Courts where interim stay has been granted against the recovery. It was stated that before the Kerala High Court, arguments are at advance stage for final disposal.
The second element of the petitioner's challenge is to the merits of the order of assessment. It was contended that as the plastic footwear is a commodity notifying tax @ 5% and whereas, the Department is demanding tax @ 15% on the ground that the reduced rate of duty would not be available to plastic footwear which is branded.
Before passing any order; including any interim order, we would like to hear the respondent and for which purpose, NOTICE returnable on 10 th October 2018.
[Akil Kureshi, J.] [B.N Karia, J.] Prakash Page 2 of 2