Justice Chandrachud describes himself as "intriguing." Articles about the GST Council's Decision

  • May 27, 2022, 10:57 a.m.

New Delhi: Supreme Court Justice DY Chandrachud on Thursday said that he is "intrigued" by articles written on the judgement ordered by him, which held that the recommendations of the GST council are not binding on Parliament and the state legislatures. Justice Chandrachud was referring to the judgment delivered on May 19 in the case Union of India versus Mohit Minerals, which held that the GST Council’s recommendations could not bind the legislative powers of the Union and States. As per Article 246A of the Constitution, both the Union and States have simultaneous legislative powers on GST.

According to a report in Livelaw, Justice made this remark while addressing Senior Advocate Harish Salve, who was mentioning a petition filed by Jindal Mining Group against the GST demand by the State of Odisha. "I am intrigued by the articles being written on the different facets of the judgment..." Articles are being written on aspects like cooperative federalism, etc. "I hope you have read the judgement," he told Salve, adding that "Ultimately, we ruled on the aspect of composite supply." 

The judgment referred to the unequal voting structure of the GST Council—with the Centre having 1/3rd of the votes and the States having the remaining 2/3rd—and observed that it can be an avenue for "political contestation" between the Centre and States, particularly if different parties are governing. 

Therefore, the GST Council is not only an avenue for the exercise of cooperative federalism but also for political contestation across party lines. "Thus, the discussions in the GST Council impact both federalism and democracy," the court said. x

The judgment also discussed the interesting concept of "uncooperative federalism" by saying that a degree of contestation and friction between the Centre and States within the constitutional framework furthers the principles of democracy.

The Court also held that a separate levy of IGST on Indian importers' ocean freight service was not sustainable when tax has already been paid on the composite supply.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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