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License Fee GST Challenge Rejected: Statutory Replacement of Service Tax Upholds Taxation Liability Under Deed Terms HC dismissed the Writ Petition challenging GST levy on license fee. The court ruled that since GST replaced service tax, the petitioner remained liable to ...
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License Fee GST Challenge Rejected: Statutory Replacement of Service Tax Upholds Taxation Liability Under Deed Terms
HC dismissed the Writ Petition challenging GST levy on license fee. The court ruled that since GST replaced service tax, the petitioner remained liable to pay GST as per the Deed of Licence terms. The petitioner's claim of non-liability was deemed without merit, and the petition was dismissed without costs.
Issues: Challenge to levying GST on license fee under Deed of Licence
Analysis: The petitioner filed a Writ Petition seeking a Writ of Mandamus to declare the respondents' action of levying GST on the license fee as illegal, arbitrary, and against natural justice principles. It was argued that the petitioner had obtained a license to operate a pop-corn stall at the respondent's premises by entering into a Deed of Licence, and the demand for GST was contrary to the terms of the agreement. The respondents contended that the petitioner had agreed to pay service tax on the monthly license fee as per the Deed of Licence, and with the introduction of GST replacing service tax, the demand for GST was justified. The Court noted the contentions of both parties and examined Clause 43 of the Deed of Licence, which mandated the payment of service tax. It was observed that the petitioner had been paying service tax along with the license fee without objection until the introduction of GST. The Court held that since GST replaced service tax, the petitioner was liable to pay GST as per the terms of the Deed of Licence. Therefore, the Court dismissed the Writ Petition, ruling that the petitioner's claim of non-liability to pay GST was without merit. The judgment concluded by dismissing the Writ Petition without any costs and directed the closure of pending miscellaneous petitions in light of the final order.
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