2020 (1) TMI 878

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....commanding the opposite parties to:- a) to quash the impugned recommendations of GST Council being void ab initio; b) strike down the impugned notification no. 8 of 2017 Central Tax dated 27.07.2017 holding it to be ultra vires; c) strike down the impunged notification no. 14/2019 Central Tax dated 7th March, 2019 holding it to be ultra vires. 3. The petitioner is a society registered under the Societies Registration Act, 1860. The petitioner being an Association of Small Scale Ice Cream Manufacturers is eligible for various policies framed for promotion of Small Scale Industries by the various government agencies. The Association is challenging the validity of notification no. 8 of 2017 dated 27.07.2017 and 14 of 2019 dated 7th Marc....

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....at to pass the test of permissible classification, two conditions must be fulfilled, namely, (i) the classification must be founded on an intelligible differentia which distinguishes persons or things that are grouped together from others left out of the group and (ii) such differentia must have rational relation to the object sought to be achieved by the statute in question. The Court further stated that classification might be founded on different basis, namely, geographical, or according to objects or occupations or the like and what is necessary is that there must be a nexus between the basis of classification and the object of the Act under consideration. 22. In Mohd. Hanif Quareshi15, the Constitution Bench further observed that the....

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.... of the articles in Part III of the Constitution, the ascertainment of its true nature and character becomes necessary i.e. its subject-matter, the area in which it is intended to operate, its purport and intent have to be determined. In order to do so it is legitimate to take into consideration all the factors such as history of the legislation, the purpose thereof, the surrounding circumstances and conditions, the mischief which it intended to suppress, the remedy for the disease which the legislature resolved to cure and the true reason for the remedy." 25. In Hamdard Dawakhana, the Court also followed the statement of law in Mahant Moti Das and the two earlier decisions, namely, Charanjit Lal Chowdhury v. Union of India and others and....