Section 7 of the CGST Act, 2017—Supply- Whether it includes Sale —-The petitioner sought a writ of declaration declaring Section 7 read with Schedule II  in so far as it includes the transaction of sale within the scope of supply and levy tax on such sales as ultra vires the Constitution, null and void; quashing the impugned order dated 07.02.2022. The counsel for the petitioner submitted that the word 'supply' does not mean sale. He placed Reliance upon judgment of Hon'ble Supreme Court in the case of Southern Petrochemical Industries Co. Ltd. vs. Electricity Inspector & ETIO and Karnataka Power Transmission Corporation vs. Ashok Iron Works (P) Ltd. The court observed that in view of the law laid down by Hon'ble Supreme Court in various judgments, they do not find any merit in challenge to the constitutional validity of Section 7 of the Act. Article 246-A defines the source of power as well as the field of legislation with respect to goods and services tax obviating the need to travel to the 7th Schedule. The provisions of Article 246-A are available both to the Parliament and the State Legislature. Article 246-A embodies the constitutional principle of the simultaneous levy as distinct from the principle of concurrence. The Statement of Objects and Reasons to the 101st Amendment of the Constitution of India, clearly recorded that the 101st Amendment has been brought subsuming various Central indirect taxes and levies. The expression “supply” used in Section 7 includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. So far as the challenge to the impugned assessment order is concerned, they find that the copies of all relied upon documents have been given to the petitioner. Opportunity of hearing is also reflected from the notices. Against the impugned order, the petitioner has a right of appeal under Section 107. They do not find any substance in challenge to the impugned assessment order on the ground of alleged breach of principles of natural justice or provisions of Section 75(4) of the Act.

Held that:- The Hon’ble High Court dismissed the writ petition, leaving it open for the petitioner to challenge the impugned Assessment Order in appeal before the appellate authority.