In a bid to rescue India’s largest and most comprehensive tax structure i.e. the goods and services tax, the Bombay high court recently heard a petition which was going against the new indirect tax system.
The Bombay high court cleared that the goods and services tax rightly demands the payment and is totally accordance with the laws formulated. The petition filed was against the indirect tax and the court dismissed with the statement, “cannot be said to be vitiated by any error of law.”
The court cleared that the new indirect tax regime is according to the laws and it can not be blamed due to the shortcoming of any of the provisions in the law. It was a petition filed by the Builders Association of Navi Mumbai and Neelsidhi Realties and the case was heard by the Division Bench of Justice S.C. Dharmadhikari and Justice P.D. Naik.
The particular petition was filed against GST charged on a one time lease premium by the City Industrial and Development Corporation (CIDCO). As soon as the plots were allotted to them they were called for a GST payment of 18 percent which led them to approach the GST commission rate and then to the court.
The counsel which have appeared for the session stated that the tax amount cannot be levied assessed and recovered as the long-term lease of around 60 years leads to the amount of sale of the property.
Finally, the judgement enacted by the court on the said petition came in quoted for all the concerned parties, and it said that “On a plain reading of the GST Act, we do not see how we can agree with the petitioners. We are of the clear view that the demand for payment of GST is in accordance with the law. The demand cannot be said to be vitiated by any error of law apparent on the face of the record. In these circumstances, we do not find any merit in the writ petition and dismiss it.”
