2026-VIL-607-MAD
  1. Home
  2. 2026-VIL-607-MAD

SGST High Court Cases

GST - Authority of Central Government to issue Notifications beyond GST Council Recommendations - The Central Government issued Notification No.27/2017 - Central Tax (Rate), dated 22.09.2017, amending Notification No.1/2017 – Central Tax (Rate), dated 28.06.2017 and Notification No.28/2017 - Central Tax (Rate), dated 22.09.2017, amending Notification No. 2/2017 – Central Tax (Rate), dated 28.06.2017 under Sections 9 and 11 of the CGST Act, 2017, which amended the tax treatment of pulses by incorporating the expression "enforceable right in a court of law" in addition to "actionable claim" as recommended by the GST Council in its 21st meeting, thereby widening the scope of taxability beyond what was recommended - Whether the Central Government can issue notifications that go beyond the recommendations made by the GST Council – HELD - Applying the ratio established in Union of India v. Mohit Minerals Private Limited, the Central Government, while exercising the power to issue statutory Notifications under Sections 9 and 11 of the CGST Act (charging and exempting provisions), is bound by the recommendations of the GST Council. The Notification must be issued "on the recommendations" of the Council, which means it should not only reflect the recommendations but also not exceed them. Both statutory Notifications and Rules are forms of subordinate legislation and must be laid before Parliament. If the Government stands bound by GST Council recommendations while exercising Rule-making power under Section 164, it stands equally bound when issuing Notifications under Sections 9 and 11. The objective of the GST regime is to establish a uniform taxation system and harmonized national market, which would be defeated if the Centre unilaterally goes beyond Council recommendations. The GST Council represents the combined wisdom of States and the Centre, and such recommendations cannot be lightly cast aside. The expressions "actionable claim" and "enforceable right in a court of law" are not synonymous, with the latter having a much wider ambit. The addition of "enforceable right in a court of law" in the impugned Notifications constitutes going beyond the Council's recommendation, as the Council specifically recommended only "actionable claim" and not the broader expression - The impugned notifications issued by the Central Government under Sections 9 and 11 are declared ultra vires the CGST Act insofar as they incorporate the expression "enforceable right in a court of law," but are declared intra vires to the extent they remain valid without this expression - The writ petitions stand allowed - Power of GST Council to Ratify Notifications Issued by Central Government - The GST Council, in its 22nd meeting held on 06.10.2017, ratified the notifications dated 22.09.2017 issued by the Central Government under Sections 9 and 11 of the CGST Act, 2017, and approved additional conditions regarding voluntary forgoing of actionable claims or enforceable rights by persons having such claims or rights over brand names - Whether the GST Council has the power to ratify notifications issued by the Central Government either under Section 9 or Section 11 of the CGST Act, 2017 – HELD - The GST Council does not possess the power to ratify notifications issued by the Central Government. The power of the GST Council is derived from Article 279A of the Constitution of India, which confers only the power to make recommendations with respect to matters specified in Article 279A(4). The power to ratify is nowhere conferred upon the GST Council either explicitly or by necessary implication - Ratification, as a legal concept, involves the retrospective validation of an invalid act that was improperly or unauthorisedly performed initially, but such power requires explicit or implied conferment. Since neither the Constitution nor any statute invests the GST Council with ratification power, any attempt at ratification exceeds the Council's jurisdiction - The ratification made by the GST Council in its 22nd meeting is declared without jurisdiction and is set aside.
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Outreaches, Filing Intricacies...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?