TaxTMI 
TaxTMI 
2024 (7) TMI 1024
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.... they are being disposed of by this Common Order. 2. Writ Petition No. 5351 of 2021 is filed by the petitioner under Article under Article 226 of the Constitution of India praying the Court for issuance of a Writ, order or direction, more particularly, one in the nature of a Writ of Mandamus by declaring the Order in Case No. 22/2020, dated 07.10.2020, passed by the 4th respondent as illegal, null, void and arbitrary; similarly, Writ Petition No. 4760 of 2021 is filed by the petitioner under Article under Article 226 of the Constitution of India praying the Court for issuance of a Writ, order or direction, more particularly, one in the nature of a Writ of Mandamus by declaring the Order in Case No. 73/2020, dated 17.11.2020, passed by the ....
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.... were inclusive of the taxes, but from 01.01.2019 onwards, the rate of tax under the G.S.T. was reduced from what it was earlier, i.e., 28% and 18% stood reduced to 18% and 12% for the tickets above Rs. 100/- and also for the tickets below Rs. 100/-. 8. The whole dispute arises on this reduction of tax. The allegation is that once when the rate of tax stood reduced from the bracket of 28% and 18% to 18% and 12% w.e.f. 01.01.2019, the authority concerned was required to reduce the price of the tickets commensurate with the reduction in the tax so that the audience who are the end-beneficiaries get advantage of the reduction in the ticket price. It is this which is alleged against the petitioners in all the writ petitions by the 4th respond....
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....less the rate at which the G.S.T. was paid to the respondent-Department was at a rate that was fixed by the Government, i.e., 18% for the tickets sold at Rs. 100/- and 12% for the tickets being sold below Rs. 100/-. 11. Thus, from whatever price at which the tickets were sold, the rate of tax collected was paid to the respondent-Department at the same rate and that it was applicable on the relative date. 12. On these factual aspects, it was contended by the learned counsel for the petitioner that, as such, the petitioner has not pocketed anything excess and that whatever price they had charged for the tickets, the tax collected on the same has been actually paid to the Government and as such there is no default on the part of the petition....
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....f the ticket w.e.f. 11.03.2019 and as such there was no default or deliberate lapse on the part of the petitioner calling for the reduction of price of tickets 13. Learned counsel for the petitioner also strongly contended that non-reduction of the prices of the tickets also has fetched higher G.S.T. and such amount was already deposited with the respondent-Department, and hence the State has also been substantially benefitted by way of more Revenue. Lastly, he further contended that since it was a new law and the dates that were being collected could not be admittedly and properly uploaded because of various technical glitches that the petitioner was facing on the introduction of new law, all of which took some time for its proper impleme....
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....ow Rs. 100/-. From 01.01.2019, the aforesaid rate of tax got reduced to 18% for tickets more than Rs. 100/- and 12% for tickets below Rs. 100/-. The petitioner reduced the prices of tickets only w.e.f. 11.03.2019 for two months and ten days, i.e., w.e.f. 01.01.2019 till 10.03.2019. The price at which the tickets were sold was the same that were being sold as on 31.12.2019. There is no dispute so far as the petitioner having paid the G.S.T. at the rate fixed by the respondent-Department even on the price at which the tickets were sold. As a consequence, the Government has also got G.S.T. from the petitioner at the higher rate on which the tickets were sold which has thus added up the revenue to some extent. 16. The G.S.T. law was a new law ....
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.... or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices." 17. A plain reading of the said provision of law clearly indicates that the said provision has been introduced to ensure that the supplier of goods and services should not make profit from the reduction of the tax rate under the G.S.T. law. Rather the intention of the Government is that the moment the rate of tax under the G.S.T. is reduced, the benefit should immediately be passed on to the end-user by way of reduction in the prices commensurate with the reduction in the rate of tax. This, in other words, would mean that, the moment there is a cut in the rate of G.S.T., the price of the commodity or the services....