19.05.2022 – The Hon’ble Supreme Court upholds the decision of Gujarat High Court in Mohit Minerals (Ocean Freight matter)- Department appeal dismissed.

In a significant verdict, the Supreme Court on Thursday held that the recommendations of the GST council are not binding on the Union and the State Governments.

A bench led by Justice DY Chandrachud held that the Parliament intended that the recommendations of the GST Council will have persuasive value.

Importantly, the Court held that both the Parliament and the State Legislatures can equally legislate on matters of Goods and Service Tax.

“Recommendations of GST council are product of collaborative discussion. It is not imperative that one of the federal units must always possess a high share”, Justice Chandrachud read out the opeartive portion of the judgment.

The bench stated that Article 279A of the Constitution does not begin with a non-obstante clause and Article 246A does not envisage a repugnancy provision. Indian federalism is a dialogue in which state and centre always engages in a dialogue, the bench stated in a judgment which emphasized the importance of the principles of “cooperative federalism”.

Source: Live Law.in


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