2021 (3) TMI 856 - HC - GST

Delhi High Court addresses GST Act validity following Madras HC ruling, directs compliance affidavit

The Delhi High Court considered the implications of a Madras High Court judgment that invalidated certain sections of the Central Goods and Services Tax ... Constitutional Validity of Sections 109(3) and 109(9) of the Central Goods and Services Tax Act, 2017 - HELD THAT:- Mr. Singh will place on record an affidavit as to what decision, if any, has been taken by the GST Council on aspects referred to in the order dated 19.11.2019. This affidavit will be filed before the next date of hearing. List the matters on 13.05.2021. Issues Involved:1. Interpretation of a judgment from the High Court of Judicature at Madras regarding certain sections of the Central Goods and Services Tax Act, 2017.2. Query regarding the filing of an appeal against the judgment.3. Consideration of the impact of the judgment on the respondents.4. Submission of an affidavit by the respondent regarding the decision taken by the GST Council.5. Compliance with previous court orders and setting a future hearing date.Analysis:Issue 1: Interpretation of the Madras High Court JudgmentThe High Court of Delhi noted a reference to a judgment of the Madras High Court dated 20.09.2019, which struck down Sections 109(3) and 109(9) of the Central Goods and Services Tax Act, 2017. The judgment in question was in the case of Revenue Bar Association vs. Union of India and Ors., and the Delhi High Court acknowledged the implications of this decision on the present case.Issue 2: Appeal Filing InquiryThe Court inquired whether an appeal had been lodged against the Madras High Court judgment. The respondent's counsel was unable to confirm the status of any appeal to the Supreme Court. The Delhi High Court expressed the view that unless a different stance was adopted, the respondents would be bound by the directives of the Madras High Court judgment.Issue 3: Impact on RespondentsConsidering the absence of an appeal, the Court emphasized that the respondents would be subject to the directions outlined in the Revenue Bar Association case. The matter was also presented before the GST Council for review based on the observations made by the Delhi High Court in a previous order.Issue 4: Affidavit SubmissionThe Court directed the respondent's counsel to submit an affidavit detailing any decisions made by the GST Council concerning the issues highlighted in the previous court order. The filing of this affidavit was mandated before the next scheduled hearing, indicating the importance of the Council's input in the matter.Issue 5: Compliance and Future HearingAcknowledging previous court directives, the Court reminded the respondents to adhere to the orders issued on 19.11.2019 within the specified timeframe. Additionally, a future hearing was scheduled for 13.05.2021 to further address the matters at hand, ensuring procedural continuity and progress in the case.