2018 Taxo.online 570

R/SPECIAL CIVIL APPLICATION NO. 20559 of 2018 dated 26.12.2018





Integrated Goods and Service Tax Act, 2017

Section 7

Harsha Devani, Justice & A. P. Thaker, Justice


High Court


Represented by: – 

Petitioner: – Uchit N Sheth 

Respondent: –  

Order: – 

  1. Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of section 7 of the Integrated Goods and Services Tax Act, 2017, to submit that by virtue of sub-section (5) thereof, supply of goods or services or both to or by a Special Economic Zone developer or a Special Economic Zone unit shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. It was submitted that once the supply of goods or services under the Central Act are treated to be supply of goods and services in the course of inter-State trade or commerce, it is not permissible to levy tax on sales of petroleum crude, motor spirit (commonly known as petrol), high speed diesel, natural gas and aviation turbine fuel to Special Economic Zone units and developers under the Gujarat Value Added Tax Act, 2003 by treating them to be local/intra-State sales within the State of Gujarat. Various other submissions have also been advanced; however, it is not necessary to refer to the same at this stage. 
  2. Having regard to the submissions advanced by the learned advocate for the petitioners, Issue Rule returnable on 8th February, 2019. In view of the fact that the constitutional validity of section 7 read with section 4 of the Gujarat Value Added Tax Act, 2003 has been challenged to the extent indicated in the prayer clause, let Notice of Rule be issued to the learned Advocate General. Direct service is permitted. 
  3. To be heard with Special Civil Application No.22292 of 2017

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