19 Jan 2121

There is always a presumption in favour of the legality of an enactment or any portion of it - Delhi High Court

Case : Sartaj Ali v. Union of India & Anr. W.P.(CRL) 2020/2020

Court : Delhi High Court

Bench : Justice Manmohan and Justice Asha Menon

Decided on : 19 Jan 2121

The Relevant Statutes

Central Goods and Services Tax Act of 2017

Brief Facts & Procedural History

1. The current writ case questions the constitutionality of several elements of the Central Goods and Services Tax Act of 2017.

2. In a similar case, Dhruv Krishan Maggu vs. Union of India & Ors., W.P.(C) 5454/2020, this Court declined to issue an interim order, stating that it does not want to interfere with the inquiry at this time, especially in writ proceedings.

The Issue(s) of the Case

Whether certain provisions of the Central Goods and Services Tax, Act 2017 are constitutional valid?

The Observations of the Court

1. Honourable High Court of Delhi at New Delhi observes that In Vakamulla Chandrashekhar vs. Enforcement Directorate & Anr., W.P.(Crl.) 852/2017, a Division Bench of the High Court of Delhi in New Delhi took the polar opposite position to that expressed in Rajbushan Omprakash Dixit vs. Union of India & Anr. 2018 (1) JCC 506. Furthermore, in The Directorate of Enforcement vs. Karti P. Chaidambaram, TC (Crl.) No.003 of 2018, the Supreme Court moved the case from a bigger bench to itself. As a result, the judgement entered by this Court in Dhruv Krishan Maggu vs. Union of India & Ors. W.P.(C) 5454/2020 cannot be considered to be per incuriam because there are two contradictory Division Bench judgments.

2. Honourable High Court of Delhi at New Delhi also observes that furthermore, this Court is not bound by the interim decision issued by the High Court of Punjab and Haryana in Akhil Krishan Maggu & Anr. vs. Deputy Director, DGGI & Ors. C.W.P. No.24195/2019 (OM). Also, because the Supreme Court confirmed the Telangana High Court's position in Union of India vs. Sapna Jain & Ors., SLP (Crl.) 4322-4324/2019, it cannot be argued that this Court made a legal error by not adopting the High Court of Punjab and Haryana's perspective.

The Decision Held by the Court

1. Honourable High Court of Delhi at New Delhi held that in light of this Court's decision in Dhruv Krishan Maggu vs. Union of India & Ors. W.P.(C) 5454/2020, the plea for interim relief is rejected based on parity of reasoning.

2. List the case with Dhruv Krishan Maggu vs. Union of India & Ors. W.P.(C) 5454/2020 before the roster Bench on March 18, 2021.

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