MEGHA TECHNICAL AND ENGINEERS PVT. LTD Vs. STATE OF MEGHALAYA

JUDGEMENT

(1.) The challenge in these two writ petitions is to the validity of a State enactment that already stands repealed upon the goods and service tax regime having taken over.

(2.) According to the petitioners, the cess imposed by the State of Meghalaya by the Meghalaya Cement Cess Act, 2010 (Act No.5 of 2011) was completely illegal, without any authority and grossly prejudicial to the petitioners and others connected with the cement industry. The petitioners submit that when a tax is imposed by a State or the Union in accordance with law, a further levy may be added thereto by way of a cess, where the quantum realised by way of the cess is earmarked for a special public beneficial purpose. The petitioners refer to the education cess which is imposed on income-tax and cess charged in various other fields by way of an additional levy but which is earmarked for a special purpose and may not be subsumed as a part of the general revenue of the Union or the State.

(3.) Sec. 3 of the impugned Act of 2010 is the charging sec. :