High Court allowed common writ petitions challenging levy of GST on license fees. Court held that Deed of Licence stipulating service tax borne by Corporation covers GST as replacement levy, and demanded GST model invoices set aside.
Writ petitions allowed; impugned Demand Notices in form of GST Model Invoices set aside; no order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
[331e ]
HIGH COURTFORTHE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction)
MONDAY, THETWENTY EIGHTH DAY OF NOVEMBER TWO THOUSAND ANDTWENTY TWO
PRESENT
THE HONOURABLESRIJUSTICE T.VINODKUMAR AND
THE HONOURABLESRIJUSTICEPULLA KARTHIK
WRIT PETITIONNOS:150831510315106 AND 15159 0F 2018
W.P.No.15083 of 2018
Between:
Smt. B.RamMohan Rao,S/o B. Krishna Murthy,-Age35, Occ business' R/o iign"in ViratRegency, Jadcherla, Mahaboob Nagar District'
...PETITIONER
AND
(RR 2 to 4 cause titleis amendedas per Court Order dated 21-06-2018in I A No 2 of 20'18)
...RESPONDENTS
Petition underArticle 226 of the constitution of lndia praying that in the circumstancesstatedintheaffidavitfiledtherewith,theHighCou(maybe. pteaseO too issue a writ, orderor direction more particularlyone in the natureof irrlandamus or anyother appropriatewrit declaringthe action of the respondents i"uying Gooos ,noSetuices Tax (GST) on the licensefee payable by the p"titioil"r for the licensegranted to carry on business, trade and vocationis in ,iot.tion of the termsof ticense granted in favorof petitioner as illegal,arbitrary, in violation ofprinciples of naturaljustice and fair play'
Contd....2
r.A.NO:1 0F 2018
Petition underSection 151 CPC praying that in the circumstances statedin the affidavitfiled in suppoiioi tn" p1[it'on' int nigt' court mav be pleased to direct therespondents "oti;i";y ;yGoods and -S-ervices Tax on the license feepayableby the petitioriet-i6' -t(" license grantedto carryingon trade' business orvocation.
Counsel for thePetitioner: SRI'D'V'CHALAPATHIRAO
Counsel forthe Respondents: SRI'THOOM SRINIVAS(SC FORTSRTC)
W.P.NO:15103oF 2018
Between:
Sri V. VeeraNarayana. S/o Chinna Jelaiah- Age 35 vears Occ ; Business' R/o.H.No.',l2-587186seetnailtm;;;i'R";i N; iintira ua{ar', secunderabad'
...PETtTIONER
AND
...RESPONDENTS
Petition UnderArtrcle 226 of the Constitution.oflndia praying that in the -riled therewith. the Hiqh court may be circumstancesstatedin rl"-liiiiruit pleased to issuea writ ordJr i'l'rectionmore particularlv one in the nature of Mandamusor anyotner api'oi'iatewrit declarrng the actibn of the respondents levyingGoods rno s",,,.LJi"-tCsrlon thi licensefee payable by the petitioner for thelrcense gi"'nt"Jto't"ryon businesstrade and vocation is in violation ofthe terms o, ,,."-n."grrnteo in tavor of petitioner as illegal'arbitrary' in violation ofprincrples of natural lustlce and lalr play
Contd....3
3
r.A.NO: IOF 2018
Petition underSection151 CPC praying that.in the circumstances statedin the affidavitfiled in suppori "itn" p"iition it," HigJt Court may be pleased to direct therespondents not io-levy any Goods and Services Tax on the license t"" pryrOi" tythe petitionlr- f6r tne license granted to carrying on trade' business orvocation-
Counsel forthe Petitioner: SRI'D'V'CHALAPATHIRAO
Counsel forthe Respondents: SRI'THOOM SRINIVAS (SC FORTSRTC)
W.P.NO: 15106 0F2018
Between:
Sri S' MahaboobBasha,S/o, lmansha, Age 44 years, occ ; Business, Rlo.315224' Raja Kuntla.Warangal District
...PETITIONER
AND
...RESPONDENTS
Petition UnderArticte 226 of Ihe Constitution of lndia praying that in the circumstancesstatedin tne atfrOavit filed therewith' the High Court maybe ;i";t;i" issue a writ, otJ"t Lt Jirection more particularlyone in the nature of Mandamusor anyother approprlatewrrt declaring the action of the respondents iuryirg G".0.,nO S"rui.LtTax (GST)on the license fee payable by the petitioner for the hcensegirnt"Oto'carryon business' trade and vocation is in Iioirtion of thetermsof lriense granted in favorof petitioneras illegal'arbitrary, in violation ofprinciples of natural justiceandfair play'
Contd....4
-4-
t.A. NO:'l OF 2018
PetitionunderSectionl5lCPCprayingthatinthecircumstancesstatedin the affidavitfiledin supportof the petition,ine Uign Court may be pleasedto direct the respondentsnot to levy any Goods and Services Tax on the license t"" i"V"Ui" tytne petitioner for the license grantedto carryingon trade' business or vocation.
Counsel for thePetitioner: SRI.D.V.CHALAPATHI RAO
Counsel for theRespondents: SRI.THOOM SRINIVAS(SC FOR TSRTC)
W.P.NO: 151590F 2018
Between:
Smt. B. Padmavathi'Wo. B. Krishnalvlurthy, Age56, occ. business, R/o, Yagnesh Viiat neg"n"y, Jadcheria'Mahaboob Nagar District'
...PETITIONER
AND
..RESPONDENTS
Petition UnderArticle 226 of the Constitution of lndia praying thatin the cir"umstinilsstated in the affidavit filed therewith'the High Court maybe ia.re a writ,oroer or direcrron more particutartyone in the nature of ;i;;;-i; fulandamus oranyother appropriatewrit declaringthe action of the respondents i""Vi"g GooOt ,noS"rui""t Tax (GST)on thL licensefee payableby. the oetitionerfortheltcensegrantedto'Carryonbusiness'tradeandVoCationisin ;;i;h; "i th; Li*.ot liiensegranted in favor of petitioner as illegal, arbitrary, in violation ofprinciples of naturaljustice andfair play
Contd...5
5
|.A.NO:1 OF 2018
Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may bepleased to direct the respondents not to levy any Goods and Services Tax on the license fee payable by the petitioner for the license granted to carrying on trade, business or vocation.
Counsel for the Petitioner : SRI.D.V.CHALAPATHI RAO
counsel for the Respondents : sRl.THooM sRlNlvAS (sc FoR TSRTC)
The Court made the following COMMON ORDER
ITHE HON'BLE SRI JUSTICE T. VINOD KUMAR AND
THE HON'BLE SRI JUSTTCE PULLA KARTHIK
WP. No.s 15O83 1s103 151O6 and 15159 of 2018
COMMON ORDER: (per Hon'ble Sri Justice T.Vinod Kumar)
In all these Writ Petitions, the petitioners have assailed the action of the respondents in lelying/demanding GST for the premises, wherein the petitioners were permitted to set-up and run the specified business by granting licence, as being illegal, arbitrary, without any authority of law and contrary to the Deed of Licence entered into between the parties.
2
liable to pay the GST in addition to the licence fee as shown in the said modei invoice.
3
GST and all incidentalcharges, taxesand other charges levied by the Statutory Authority,as being claimed by the respondents'
50
All incidental charges,taxesand other charges levied by the StatutoryAuthorityfrom timeto time are to be borne by thelicencee."
4
"52. The service tax if any applicable on renting of immovable properties of thc corporation, rvill be borne by the corporation.
5
case of the respondents that in addition to the levy of Service Tax, they have been fastened with the new levy under the GST Act, which the petitioners are required to discharge/pay in addition to the lease rent reserved under the agreement.
15, Consequently, miscellaneous petitions pending, if any. sh;rll stand closed in the light of this f-rnal order.
SD/-P.PADMANABHAREODY ASSTSTAyI. REGISTRAR ,TRUE COPY// ( -)l) SECTION OFFICER
To
6 One CC to SRI THOOM SRINIVAS(SC FORTSRTC) (OPUC)
SA
BS.+\ -
HIGH COURT
DATED:2811112022
COMMON ORDER
w.P.NOS.15083, 15103,
15106 AND 15159 0F 2018
1tr E STAI€: .<br>|<br>//a
)'.
I/;
17 JAt{ 2$n )l
l,!c>
\11V+
\ ?
ALLOWING THE WRIT PETITIONS
WITHOUT COSTS.
,.--
-y
\<br>\1.ry
2 issues framed by the court
Whether levy of GST on license fee payable for permission to run business on respondent's premise is contrary to terms of Deed of Licence which stipulates service tax to be borne by corporation.
Whether respondents can claim GST from petitioners as new levy not covered by Deed of Licence when Service Tax was expressly agreed to be borne by Corporation.
2 provisions across 2 enactments
Smt. B. Ram Mohan Rao
Sri V. Veera Narayana
Sri S. Mahaboob Basha
Smt. B. Padmavathi
TSRTC
T. Vinod Kumar
Pulla Karthik
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
