The advocate representing the petitioner also alleged that Central and State governments intervene and control petrol prices when elections are imminent even though they claim that it is petroleum marketing companies that decide the prices.
The Kerala High Court on Monday asked the Goods and Service Tax (GST) Council to decide on whether petroleum products can be included under the ambit of the Goods and Services Tax (GST).
The Bench comprising Chief Justice S Manikumar and Justice Shaji P Chaly agreed with the Standing Counsel and held thus: “We only direct the Goods and Services Tax Council to take an appropriate decision within a period of six weeks from the date of receipt of a copy of the representation.” LiveLaw reported.
While disposing of the petition, the court took note of an earlier decision of the Court that held that GST council cannot be mandated to make any decision and, therefore, chose to only direct the GST Council to forward the representation to the Union of India to take an appropriate decision within a period of six weeks.
The advocate for the petitioner told the Kerala High Court that different rates are charged for petrol and diesel in various states in India due to the different rates of tax levied by State governments under “fragmented taxing policies”. This, he contended, hinders the achievement of a harmonized national market as envisaged under Article 279A(6) of the Constitution of India.
The petitioner further added that a rise in petrol prices has a ripple effect that creates inflation of prices of various other commodities which directly affects the common man.
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He also alleged that Central and State governments intervene and control petrol prices when elections are imminent even though they claim that it is petroleum marketing companies that decide the prices.
Petrol is selling at an all-time high of Rs 103.63 for a litre in Mumbai. On May 29, the retail price of petrol hit the Rs 100-a-litre mark. A litre of petrol costs Rs 97.50 in Delhi. In Chennai, you have to shell Rs 98.65 for a litre of auto fuel. Petrol is being sold at Rs 97.38 in Kolkata.
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