TaxTMI 
TaxTMI 
2022 (6) TMI 1204
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....ant loan of Rs. 6,50,000/- at 13% interest above the credit limit. A similar email communication was also received on 28.02.2019. Petitioner expressed his willingness to the said offer by a SMS communication on 28.02.2019. On 02.03.2019, petitioner received an email communication from the Bank that a loan on his credit card has been disbursed and is repayable in EMIs along with an additional initial interest amount. Thereafter a demand draft of Rs. 6,50,000/- was dispatched to the home address of the petitioner and he encashed the said draft. Upon receipt of the credit card statements of two successive periods, the petitioner detected that IGST @ 18% was charged on the initial interest as well as interest component of EMI. Petitioner by several letters protested against charging of IGST on the interest component of the EMI and requested the Bank to reverse the said IGST charges. Since the respondents did not take any steps for reversing the said IGST charges and was continuing to charge IGST, this writ petition was filed. 3. The learned advocate for the petitioner contended that grant of loan by the bank to the petitioner squarely comes within the meaning of "supply" as provided i....
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....ation is not applicable in the instant case as the interest component of EMI was for credit card services. 7. In reply the learned advocate for the petitioner submitted that in the instant case the cause of action arose within the territorial jurisdiction of this Hon'ble Court and as such this Hon'ble Court has jurisdiction to entertain and try the instant writ petition notwithstanding the fact that the registered office of the respondent no. 1 bank is situated outside the territorial jurisdiction of this Hon'ble Court. In support of such contention the learned advocate for the petitioner relied upon a decision of the Hon'ble Supreme Court of India in the case of Om Prakash Srivastava vs. Union of India and another reported at (2006) 6 SCC 207. 8. Heard the learned advocates for the parties and considered the materials placed. 9. From the pleadings of the writ petition, affidavits filed by the respondents and the arguments advanced by the respective learned counsels, the following issues arise for consideration. I. Whether the instant writ petition is maintainable at all and also whether this Court can entertain and try the same; and II. Whether the interest component of EMI....
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....statutory function." "33. For the discussion held above, in our view, a private company carrying on banking business as a scheduled bank, cannot be termed as an institution or a company carrying on any statutory or public duty. A private body or a person may be amenable to writ jurisdiction only where it may become necessary to compel such body or association to enforce any statutory obligations or such obligations of public nature casting positive obligation upon it.****************** " 14. In the light of the aforesaid legal proposition laid down by the Hon'ble Supreme Court on the maintainability of a writ petition this court has to consider whether the instant writ petition is maintainable in the case on hand. 15. The following facts are however, not in dispute. (i) The share capital of the respondent no. 1 bank is not held at all by the government nor any financial assistance provided by the State. (ii) The bank does not enjoy any monopoly status nor can it be said to be a institution having state protection. (iii) No governmental agency or officer is connected with the affairs of the respondent no. 1 bank nor is anyone of them a member of the Board of Directors. (....
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....ng made in that regard, the instant writ petition is maintainable. 21. Now, this court has to decide the other limb of the objection as to the maintainability of the instant writ petition on the ground of lack of territorial jurisdiction of this court. It is not in dispute that the office of the respondent no. 1 is beyond the territorial jurisdiction of the High Court at Calcutta. In the credit card statements issued by the respondent no. 1 bank, it has been mentioned that the place of supply is the State of West Bengal. The demand draft was despatched to the petitioner at his residential address which falls within the territorial jurisdiction of this Hon'ble Court. Thus, the part of the cause of action arose within the territorial jurisdiction of this Hon'ble Court. 22. The Hon'ble Supreme Court in the case of Om Prakash Srivastava (supra) held that the High Court can exercise power to issue direction, order or writs if the cause of action arises in part within its jurisdiction. In paragraph 8 of the said reported judgment, the Hon'ble Supreme Court held thus- "8. Two clauses of Article 226 of the Constitution on plain reading give clear indication that the High Court can exer....
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....ing but a service pertaining to the said credit card. 27. Petitioner has accepted the offer made by the bank contained in the aforesaid communications dated February 21, 2019 and February 28, 2019. Thus, the terms and conditions mentioned in the said communications are also accepted by the petitioner. In view thereof this Court is unable to accept the contention of the learned advocate of the petitioner that the services by way of extending loans by the bank in the instant case does not amount to credit card services. 28. It further appears from the further communications dated February 21, 2019 and February 28, 2019 that Goods And Services Tax as notified by the Government of India is applicable on the initial interest amount, interest component of EMI, all fees and other charges and is subject to change as per relevant regulations of the Government of India. 29. The learned advocate for the petitioner contended that the Central Government has exempted the interstate supply of services by way of extending loans in so far as the consideration is represented by way of interest from the levy of IGST as per the notification dated June 28, 2017. Thus, according to the petitioner the....