Court dismisses challenge to E-auction Notifications on GST rate for scrap buses as premature.

The Court dismissed the petitions challenging E-auction Notifications regarding the GST rate on scrap buses as premature. It clarified that the GST rate was not definitively set at 28% in the Notice and advised the petitioners to participate in the tender process to resolve GST rate queries through appropriate channels. The Court emphasized the availability of mechanisms for determining tax liability and highlighted the need for petitioners to address concerns regarding Advance Ruling Authorities with the government.

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Issues:
1. Challenge to E-auction Notification
2. Determination of GST rate on scrap buses
3. Prematurity of the petition

Challenge to E-auction Notification:
The petitioners, auction purchasers of scrap buses, sought a writ to quash E-auction Notifications issued by the 1st Respondent. They argued that the GST rate of 28% mentioned in the notice was incorrect for scrap buses. The petitioners contended that scrap buses, certified as unfit for road use, should attract 18% GST under specific headings of the GST Act. They highlighted the absence of an Advance Ruling Authority for tax disputes under the new GST Acts. Comparisons were drawn with E-Tender Notices from other states reflecting an 18% GST rate for scrap buses.

Determination of GST rate on scrap buses:
The Respondent's counsel clarified that the E-Tender Notice did not fix the GST rate at 28% but stated it as "As applicable/28.0". The Respondents suggested seeking clarification from the KSRTC or the Authority for Advance Ruling under the GST Acts. The Court found the petitions premature, emphasizing that the GST rate was not definitively set at 28% in the Notice. It advised the petitioners to participate in the tender process and resolve GST rate queries through appropriate channels.

Prematurity of the petition:
The Court deemed the petitions premature as the GST rate dispute was yet to be clarified by the Respondents or the Commercial Tax Department. It emphasized that the petitioners should engage in the bidding process based on the rates specified in the E-Tender Notice. The Court highlighted the availability of mechanisms for determining tax liability during regular assessment proceedings or through Advance Ruling Authorities. Dismissing the petitions, the Court emphasized the need for petitioners to address concerns regarding the constitution and functioning of Advance Ruling Authorities with the government.

In conclusion, the Court dismissed the petitions as premature, advising the petitioners to engage in the bidding process and resolve GST rate queries through appropriate channels rather than invoking writ jurisdiction at that stage.

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