TaxTMI 
TaxTMI 
2019 (8) TMI 342
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....rovisions of the VAT Act, and in particular, Section 64 thereof, beyond one year after the appointed day or taken steps thereunder. It is submitted that Section 78 of the Maharashtra Goods and Services Tax Related Laws (Amendments, Validation and Savings) Act, 2017 ("State GST Savings Act"), by which such provisions are so continued, is ultra vires the Constitution Amendment Act. 2. The Petitioner is a Non­Banking Finance Company mainly engaged in the business of asset backed financing for purchase of cars, commercial vehicles, etc. The Petitioner has been registered under the VAT Act, filing returns and paying tax thereunder. It is now registered under the Central and State GST Acts and filing returns and paying tax thereunder. The Petitioner's grievance is that on 4 April 2018, its premises were searched by Respondent No.2 - Assistant Commissioner of Sales Tax and his team. The premises were sealed during these operations for a number of days. This was followed by a witness summons issued to the Petitioner's Managing Director purportedly under Section 14 of the VAT Act. The Petitioner claims these actions to be illegal and has challenged them in the present petition.....
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....and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter­State trade or commerce. Explanation.-The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council." Article 246A, as is apparent from its opening words, overrides Articles 246 and 254. Article 246 provides for the power of Parliament and legislatures of States to make laws with respect to matters enumerated in the three lists of the Seventh Schedule. Whereas Parliament has the exclusive power, under Clause (1) of Article 246, to make laws with respect to matters in List I ("Union List"), both Parliament and State Legislatures have power under Clause (2) to make laws with respect to matters enumerated in List III ("Concurrent List") subject to Clause (1); the State legislatures, subject to Clauses (1) and (2), ha....
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....al Councils, Nagar Panchayats and Industrial Townships Act, 1965, the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 and the Maharashtra Value Added Tax Act, 2002 by this Act, those laws and all rules, regulations, orders, notifications, form, certificates and notices, appointments and delegation of powers issued under those laws which are in force immediately before the appointed day of the Maharashtra Goods and Services Tax Act, 2017 shall, subject to the other provisions of this Act, in so far as they apply, continue to have effect after the appointed day of the Maharashtra Goods and Services Tax Act, 2017 for the purposes of the levy, returns, assessment, re­assessment, appeal, determination, revision, rectification, reference, limitation, production and inspection of accounts and documents and search of premises, transfer of proceedings, payment and recovery, calculation of cumulative quantum of benefits, exemption from payment of tax and deferment of due date for payment of tax, cancellation of the certificate of Entitlement, collection or deduction of tax at source, refund or set off of any tax, withholding of any refund, exemption from ....
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....iry of one year of the commencement of the Constitution Amendment Act, whichever is earlier. It is submitted that this is the effect of Section 19 of the Constitution Amendment Act. The argument is fallacious for more than one reasons as explained below. 8. In the first place, there is no inconsistency between the provisions of Section 78 of the State GST Savings Act and the Constitution as amended. The Constitution Amendment Act provides for concurrent power of the State legislature to make laws with respect to goods and services tax, i.e. any tax on supply of goods, or services or both. The State GST Act has been enacted by the State legislature under this power. Just as it could enact any law relating to tax on supply of goods, or services or both, it could amend or repeal or save any such law. The VAT Act is one such law, which it had the power to amend or repeal or save. Section 78 of the State GST Savings Act saves the provisions of the VAT Act so far as they relate to any payment or recovery of tax under the VAT Act and any purpose connected or incidental thereto relating to any period prior to the commencement of the State GST Act. There is no inconsistency or repugnancy h....