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SC dismisses plea challenging constitutional amendments relating to GST

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New Delhi, Sep 2: The Supreme Court on Monday dismissed a plea challenging the constitutionality of certain amendments introduced in the Constitution for implementing Goods and Services Tax (GST).

A bench presided over by Justice J.B. Pardiwala refused to interfere with the Patna High Court order, which had dismissed a writ petition challenging the constitutionality of Sections 2, 9, 12 and 18 of the Constitution (101st Amendment) Act, 2016. “What kind of public interest litigation (PIL) has been filed? How are you concerned? How is the public concerned? Sorry, dismissed,” said the Bench, also comprising Justice Manoj Misra.

In its decision passed in April this year, the high court ruled that the petitioner being an advocate did not have the locus standi to challenge the amendments as he was not involved in any commercial activities and no legal injury had been caused to him.

The special leave petition filed before the apex court said that the high court has failed to appreciate the settled principle of law that if the issue raised is of fundamental importance involving the larger public interest, the rule of locus standi can be relaxed.

“If any amendment to any provision in the constitution abrogates its basic feature, every citizen irrespective of his position has the right to challenge the vires of the said provision before the Constitutional Courts,” it added.

Further, it said that the Constitution (101st Amendment) Act, 2016 brings about a sea change in the manner and power of levy of indirect taxation in the country, the incidence of which is indeed passed on to common people and every citizen at large are affected by such provision whether directly or indirectly.

The plea, filed through advocate Chandan Kumar, said that the GST Council, an executive body, is empowered to create a new levy in respect of petroleum crude, high-speed diesel, motor spirit, etc., and de facto amend the VII Schedule of the Indian Constitution from the date of its recommendation.

“There is implied limitation to the delegation of legislative powers of Parliament as the Parliament under our Constitution is a creature of the Constitution and cannot delegate its essential functions of amendment as provided under Article 368 to another body which is neither a part of the Parliament nor in any way responsible to it,” it contended.

The plea added that the legislative functions of Parliament for providing compensation to the states have been subjected to the recommendation of the GST Council, without any constitutional safeguard, undermining the essential functions of the Parliament.

IANS

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