Court upholds constitutionality of Maharashtra GST law amendments, validates VAT Act post-GST, directs consideration of Petitioner's application.

The Court upheld the constitutionality of Section 78 of the Maharashtra Goods and Services Tax Related Laws (Amendments, Validation and Savings) Act, 2017, rejecting the challenge brought by the Petitioner. It affirmed the legitimacy of actions taken under the Maharashtra Value Added Tax Act, 2002 post-GST implementation, finding that certain provisions of the VAT Act remain applicable. Additionally, the Court accepted the assurance given by the Respondents regarding the consideration of the Petitioner's application in Form 701, directing them to proceed accordingly. No costs were awarded in this matter.

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Issues Involved:
1. Constitutionality of Section 78 of the Maharashtra Goods and Services Tax Related Laws (Amendments, Validation and Savings) Act, 2017.
2. Legitimacy of actions taken under the Maharashtra Value Added Tax Act, 2002 post-GST implementation.
3. Consideration of the Petitioner's application in Form 701.

Issue-wise Detailed Analysis:

1. Constitutionality of Section 78 of the Maharashtra Goods and Services Tax Related Laws (Amendments, Validation and Savings) Act, 2017:
The Petitioner challenged the vires of Section 78, arguing that it was ultra vires the Constitution Amendment Act. The Petitioner contended that the State of Maharashtra could not continue the application and effect of the VAT Act provisions, particularly Section 64, beyond one year after the appointed day due to the Constitution (One Hundred and First Amendment) Act, 2016. The Court analyzed Article 246A, which grants concurrent power to Parliament and State legislatures to make laws concerning GST. The Court concluded that there is no inconsistency between Section 78 and the amended Constitution. The State legislature has the power to enact, amend, repeal, or save laws related to the tax on the supply of goods or services. Section 78 saves the VAT Act's provisions for purposes connected to any period before the State GST Act's commencement, thus not being inconsistent or repugnant to the amended Constitution.

2. Legitimacy of actions taken under the Maharashtra Value Added Tax Act, 2002 post-GST implementation:
The Petitioner argued that actions taken under the VAT Act, including the search of premises and issuance of summons under Section 14, were illegal post-GST implementation. The Court held that by virtue of Section 78 of the State GST Savings Act read with Section 19 of the Constitution Amendment Act, the VAT Act's provisions continue to have effect for various purposes, including assessment, reassessment, and recovery of tax for periods before the State GST Act's appointed day. The Court found that Sections 64 and 14 of the VAT Act, related to the collection or recovery of tax, are saved and applicable, thus validating the actions taken against the Petitioner.

3. Consideration of the Petitioner's application in Form 701:
The Petitioner expressed grievance over the non-consideration of its application in Form 701. The Respondents' Counsel stated that the application had been heard and would be disposed of within three weeks. The Court accepted this statement and directed the Respondents to act accordingly.

Conclusion:
The Court disposed of the petition by rejecting the challenge to the constitutionality of Section 78 of the Maharashtra Goods and Services Tax Related Laws (Amendments, Validation and Savings) Act, 2017. The Court upheld the legitimacy of actions taken under the VAT Act post-GST implementation and accepted the Respondents' assurance regarding the Petitioner's application in Form 701. No order as to costs was made.

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