TaxTMI 
TaxTMI 
2017 (8) TMI 1194
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....Standing Counsel, accepts notice for Respondent No. 1, the Union of India. 3. The challenge in this petition is to the constitutional validity of the Goods and Services Tax (Compensation to States) Act, 2017 ('Act'). The context in which the challenge is laid is that the Petitioner is a trader of imported and Indian coal having its operation in various parts of the country. Prior to the impugned Act, under the Finance Act, 2010 ('FA 2010'), with effect from 1st July 2010, a 'Clean Energy Cess' was levied under Chapter VII. As a result, on every metric tonne of coal that was sold by the Petitioner, it was required to pay initially a cess @ Rs. 100 per tonne which was progressively increased and stood at Rs. 400 per tonne as on the date of i....
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....onstitution (One Hundred and Twenty-Second Amendment) Bill, 2014 contemplated levying an additional tax not exceeding 1% on supply of goods in the course of inter-State trade or commerce. Such additional tax was to be levied for a period of two years or for such other period as the GST Council recommended and was to be assigned to the States in the manner prescribed thereunder. However, when the Bill was debated in the Parliament, Clause 18 was dropped. What was clause 19 of the said Bill has today been enacted as Section 18 of the COI 101st Amendment Act. It states that the Parliament shall, by law, on the recommendation of the GST Council, provide for compensation to the States for loss of revenue arising on account of implementation of G....
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.... Central Goods and Services Tax Act, 2017 ('CGST Act') and such "inter-State supply of goods and services or both" as provided for in Section 5 of the Integrated Goods and Services Tax Act, 2017 ('IGST Act'). Therefore, it is clear that cess is being levied on the same taxable event that is the subject matter of the levy under the CGST and IGST Acts, viz., supply of goods and services. 10. For the purpose of providing compensation to States for loss of revenue arising out of the implementation of the GST regime, Section 8 contemplates the cess being collected in such a manner as may be prescribed. This has led to the enactment of the Goods and Services Tax Compensation Cess Rules, 2017. Notification No.1/2017-Compensation Cess (Rate), date....
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....y response. In para 15 of the petition it is stated: "15. That the Petitioner has already paid upto 30th June 2017, cess under the Clean Energy Cess levied under the Finance Act, 2010 on the imported coal, and the stock laying out it again subjected to cess under the impugned legislation. Furthermore, the no credit is allowed on the Clean Energy Cess so already paid with the cess levied under the impugned legislation. The Petitioner have stock of around 1,92,000 tonne of coal as on 30.06.2017 on which the Petitioner have already paid clean energy cess @ 400/- per tonne as per the cess levied under the provisions of Chapter VII of the Finance Act, 2010. Further, w.e.f. 01.07.2017, the Petitioner have to charge cess from customers @ 400/- pe....