Landmark GST Constitutional Amendment Upheld: Petition Dismissed for Lack of Substantive Legal Grounds and Demonstrable Injury

HC dismissed the writ petition challenging the 101st Constitutional Amendment Act, 2016. The court found no valid locus standi for the petitioner, who failed to demonstrate legal injury from the GST Council's constitutional provisions. While examining the basic structure argument, the court rejected the petition without imposing costs, emphasizing the need for genuine legal grievances in public interest litigation.

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Issues involved: Challenge to the validity of Sections 2, 9, 12, and 18 of the Constitution (101st Amendment) Act, 2016 on the grounds of violating the basic structure of the Constitution of India.

Detailed Summary:

Issue 1: Constitutionality of Sections 2, 9, 12, and 18 of the Constitution (101st Amendment) Act, 2016

The petitioner, a lawyer, challenged the constitutionality of certain sections of the 101st Amendment Act, 2016, alleging that they violate the basic structure of the Constitution. The main contention was the constitution of the Goods and Services Tax Council (GST Council) and the perceived abdication of legislative functions by the Parliament based on the Council's recommendations.

Issue 2: Locus Standi of the Petitioner

The court examined the locus standi of the petitioner, who claimed to be acting in public interest. However, the court found that the petitioner, not being involved in commercial activities or registered under the Goods and Services Tax enactments, did not suffer any legal injury due to the 101st Amendment. The court emphasized that a writ petition under Article 226 is maintainable only when there is an enforceable statutory or legal right at stake, which was not the case here.

Issue 3: Dismissal of the Writ Petition

Ultimately, the court dismissed the writ petition, noting that there was no valid ground for the petitioner to establish locus standi or claim prejudice due to the constitutional amendment. While refraining from imposing costs due to the petitioner's misguided enthusiasm, the court cautioned against further similar actions.

In conclusion, the court found no reason to entertain the writ petition challenging the constitutionality of certain sections of the 101st Amendment Act, 2016, and dismissed the petition accordingly.

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