HC notice on plea challenging imposition of corona cess in Haryana

CHANDIGARH: The Punjab and Haryana high court on Monday put Haryana government on notice on a plea from a liquor contractor challenging the Covid-19 cess on liquor.

The petition was filed by a Jind retailer, M/s Haryana Wines. Haryana was among the states which imposed liquor cess by amending the excise policy in May.

The Punjab and Haryana high court on bench of Justice Daya Chaudhary and Justice Meenakshi Mehta has sought response from the government by July 10, further asking as to why the government decision should not be stayed.

The petitioner has argued that the imposition of Covid-19 cess is not only without jurisdiction, but also could not have been imposed on already allotted vends in March 2020.

The Haryana government has brought the amendment in the excise policy after the petitioner has placed his bid and the state has accepted his bid, thus the state cannot unilaterally change the conditions of the excise policy, the court was told.

Even otherwise, it has been imposed on the transaction by a retailer and the same has been imposed on the retailer irrespective of there being any further sale or not, the high court was informed, adding that all taxes are included in the price fixed in the excise policy by the distillery.

The distillery, while calculating the price, has to pay to the government taxes like excise duty and Value Added Tax (VAT), which is the first point of sale being done to the wholesaler, the court was told.

The petitioner even cited an example of Chandigarh administration where cess has been imposed, but is to be paid at the first point of sale (the wholesaler).