Himdarshan Samachar

The Himachal Pradesh High Court has imposed an interim stay on the collection of additional goods tax under the Himachal Pradesh Passengers and Goods Taxation Act, 1955. The ruling was issued by a two-judge bench consisting of Justice Tarlok Singh Chauhan and Justice Sushil Kukreja.
The court issued clear directions that, until the next hearing, the concerned departments of the state government shall not collect any additional tax under Sections 3B and 4A of the Act.
The order was passed in response to a petition filed by Kundla Iron Industries and Sutlej Textiles, challenging the validity of the provisions of the Act as amended in 1997, stating that they violate Article 269A of the Constitution.
The petitioners informed the court that after the implementation of the GST law in 2017, the state government has been levying a separate tax on inter-state supply, which is against both the law and the Constitution.
However, the court clarified that the order will currently apply only to the petitioners. This interim relief could potentially result in a revenue loss of several crores for the state government.