TMI Blog2022 (6) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... t III and for any other purpose - from a reading of the said constitutional provision it is evident that the High Court has power to issue directions, orders or writs to any person or authority. The petitioner has prayed for a declaration that the interest component of the EMI of the loan granted by the bank to the petitioner is exempted from the levy of IGST in view of the notification dated June 28, 2017. Apart from the bank the service tax authorities have also been impleaded as party respondents in this writ petition. This writ petition has been filed to compel the Bank and the Service Tax authorities to perform their obligations in accordance with the provisions of the statute regarding levy and collection of IGST and to grant exemption which the petitioner may be entitled to as per the notifications issued under the relevant statutes - by applying the proposition of law laid down by the Hon ble Supreme Court in FEDERAL BANK LTD. VERSUS SAGAR THOMAS ORS. [ 2003 (9) TMI 707 - SUPREME COURT] this court is of the considered view that since the petitioner has prayed for a relief to compel the respondent bank to grant exemption as per the provisions of the relevant statute up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification dated June 28, 2017. Thus, this issue is answered in the negative and against the petitioner. Petition dismissed. - WPO 547 OF 2019 - - - Dated:- 24-6-2022 - HON BLE JUSTICE HIRANMAY BHATTACHARYYA For the Petitioner : Mr. Romendra Kumar Biswas, Ms. Ujani Pal (Samanta) .Advocates For the Respondent No. 1 : Mr. Prabhat Kumar Srivastawa Advocate For the Respondent No. 4 : Mr. K. K. Maiti .Advocate For the Respondent No. 5 : Mr. Rajesh Kumar Shah .Advocate Hiranmay Bhattacharyya, J. :- 1. The borrower has filed this Writ petition praying for a declaration that the interest component of the Equated Monthly Instalments (for short EMI ) of the loan granted by the respondent Bank is exempted from levy of Integrated Goods and Service Tax (for short IGST ) and for a direction upon the Bank and the IGST authorities to refund the IGST collected from the petitioner. 2. The facts leading to the filing of the writ petition are as follows- Petitioner is holder of a valid Citi Bank Credit Card issued by the respondent no. 1/Bank. He received an email communication on 21.02.2019 from the Bank offering an instant loan of Rs. 6,50,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise and ors. vs. Himalayan Co-operative Milk Product Union Ltd. and Ors. reported at (2000) 8 SCC 642. 5. Mr. K.K. Maiti, learned Counsel representing the respondent no. 4 namely Principal Chief Commissioner of Central Tax raised the point of maintainability of this writ petition on two fold grounds. Firstly, that the reliefs claimed against the respondent no. 1/Bank, not being a nationalized Bank, is not maintainable under Article 226 of the Constitution of India. Secondly, the registered office of the respondent Bank is situated outside the State of West Bengal and as such this Hon ble Court lacks territorial jurisdiction to entertain and try this writ petition. With regard to the applicability of the Exemption Notification dated June 28, 2017, Mr. Maiti submitted that the loan was extended to the petitioner on the basis of the credit card issued by the Bank and the interest component of EMI is on account of Credit Card services which is not exempted as per the said notification. 6. The learned advocate for the Bank also raised similar objections with regard to the maintainability of the writ petition. On merits, he submitted that the said Exemption Notification is not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court in the case of Federal Bank Ltd. vs. Sagar Thomas and others reported at (2003)10 SCC 733 referred to several decisions of the Hon ble Supreme Court of India and held that a writ petition under Article 226 of the Constitution of India may be maintainable against a private body discharging public duty or positive obligation of public nature and also against a person or a body under liability to discharge any function under any statute to compel it to perform such a statutory function. The Hon ble Supreme Court in paragraphs 18 and 33 of the said reports held as 18. From the decisions referred to above, the position that emerges is that a writ petition under Article 226 of the Constitution of India may be maintainable against (i) the State (Government); (ii) an authority; (iii) a statutory body; (iv) an instrumentality or agency of the State; (v) a company which is financed and owned by the State; (vi) a private body run substantially on State funding; (vii) a private body discharging public duty or positive obligation of public nature; and (vii) a person or a body under liability to discharge any function under any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 (for short IGST Act ). 18. The respondent bank has to act in terms of the provisions of the IGST Act read with the CGST Act while charging IGST. The allegation of the petitioner is that the respondent bank is charging IGST de hors the exemption notification dated June 28, 2017. 19. The petitioner has prayed for a declaration that the interest component of the EMI of the loan granted by the bank to the petitioner is exempted from the levy of IGST in view of the notification dated June 28, 2017. Apart from the bank the service tax authorities have also been impleaded as party respondents in this writ petition. This writ petition has been filed to compel the Bank and the Service Tax authorities to perform their obligations in accordance with the provisions of the statute regarding levy and collection of IGST and to grant exemption which the petitioner may be entitled to as per the notifications issued under the relevant statutes. 20. Thus, by applying the proposition of law laid down by the Hon ble Supreme Court in Federal Bank (supra) this court is of the considered view that since the petitioner has prayed for a relief to compel the respondent bank to grant exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Card issued in India and who avail of a loan on their card digitally. It was further mentioned therein that the final loan amount will be subject to eligibility as per citi credit processing criteria. The loan amount was above the credit limit of the Citi Credit Card. It was further mentioned therein that the EMI amount shall be included as a part of the minimum amount due appearing in the card number s monthly credit card statement. If the amount paid towards dues on the credit card is less than the total amount due finance charges shall be levied on such outstanding (including but not limited to the transaction fee and EMI as above) as per the applicable interest rates. The applicable interest rate shall be mentioned in the monthly statement. 26. It is evident from the offer of loan that the same was not an offer to all intending borrowers but was restricted to a particular category of persons holding the Citi Bank Credit Card. The criteria for processing the loan, the manner in which the EMI of loan is reflected in the Credit Card statements and the charging of interest in case there is a shortfall in the payment of the amount due as well as the mode of payment all goes to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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