Policy circular challenge under constitutional equality and business rights failed after GST rendered the old tax dispute ineffective.

The Bombay High Court considered a challenge to a policy circular and consequential notification alleging discrimination and infringement of the right to carry on business under Articles 14 and 19(1)(g). It noted that the respondent body had statutory power under the Maharashtra Khadi and Village Industries Act, 1960 to frame policy and make regulations, subject to State Government control, and that the circular was issued within that framework without governmental objection. The Court also observed that the earlier sales tax-based controversy had lost practical effect after the GST regime came into force. The challenge failed and no further relief was maintainable.

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Issues: Whether the circular and consequential notification could be struck down as discriminatory and violative of Articles 14 and 19(1)(g) of the Constitution of India, and whether the petition survived after the coming into force of the Goods and Services Tax regime.

Analysis: The petition challenged the policy reflected in the circular on the ground of discrimination and infringement of the right to carry on business. The pleadings showed that the respondent body was empowered under the Maharashtra Khadi and Village Industries Act, 1960 to frame policy and make regulations, subject to the State Government's ultimate control over policy. The Court found that the impugned circular was issued within that policy framework and that the Government had not objected to it. It also noted that, with the introduction of GST, the earlier sales tax-based controversy no longer had practical operation in the present matter.

Conclusion: The challenge failed, and the petition was not maintainable for further relief.

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