Validity of the Circular dated 17.08.2017--- GST on HSD Dealers-- The petitioner challenged the circular dated 17.08.2017 issued by the State Government whereby the persons who are dealing with HSD has been directed to pay GST. The petitioner relied upon the decision of Punjab and Haryana High Court in the case of Carpo Power Limited –v- State of Haryana and Ors., which was disposed of on 28.03.2018. The petitioner contended that now the issue is no more res integra. The law is now settled. The petitioner submitted that all issues which are covered under Section 18 of CGST Act were also required to be considered in view of the circular issued by the State Government and non-consideration of which is contrary to the decisions delivered by the High Courts.
Held that:- The Hon’ble High Court observed that the circular dated 17th August, 2017, which is partially quashed by Punjab and Haryana High Court and has been approved by the Hon’ble Supreme Court. Other High Courts also have taken a similar view. The Court held that it would not be appropriate to enforce the circular dated 17.8.2017.—Tata Steel Limited Vs The State of Odisha & Ors. [2018] 07 TAXLOK.COM 117 (Orissa)