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TMI Blog2025 (4) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... . No. 21297 of 2023 and the other two preferred by the GST Officials of the Union and the Kerala State, impugn the judgment dated 23.07.2024 of a learned Single Judge in W.P.(C). No. 21297 of 2023. The Facts in Brief: 2. The essential facts necessary for disposal of these Writ Appeals are as follows: W.P. (C). No. 21297 of 2023 was preferred by the Kerala State Branch of the Indian Medical Association apprehending coercive action from the Directorate General of GST Intelligence for recovery of tax on various services rendered by it to its members. While it was the petitioner's contention that it was not liable to pay tax on the supply of services to its members, it apprehended coercive action for recovery of tax when it was served with summons requiring it to produce details of the registration taken by it under the GST Act and their audited books of accounts and other financial documents for the financial years from 2017-18 to 2021-22. 3. The petitioner runs various mutual Schemes for the benefit of its member-doctors, e.g. Social Security Schemes or SSS (I, II, and III), Professional Disability Support Scheme (PDSS), Professional Protection Scheme, Kerala Health Scheme, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assistance to a member of the scheme who has become so temporarily / permanently disabled that it renders him unfit to practice her / his profession. ii) Payment: Any eligible member of the petitioner may become a member of this scheme upon payment of an admission fee that is graded based on age (Rs. 5,000/- to Rs.15,000)/-. An annual fee of Rs. 1,000/- is also payable by each member of the scheme. A member of the scheme is also required to make a disability contribution (graded) upon any member of the scheme suffering disability. iii) Benefit: As with the Social Security Schemes above the aggregate disability contribution is a paid out to the disabled member. Further, upon death, a fixed sum of Rs. 50,000/- is also paid to the family of the deceased member of the scheme. The total amount of such death benefits paid each year is also collected equally from the remaining members. Professional Protection Scheme i) Object: The two objects of this scheme are: (i) to protect members in the case of harassment, litigation, etc, and provide legal aid; (ii) to promote social service activities such as medical aid to the poor, family welfare programmes, blood donation camps, me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Assistance Contribution ranging from Rs. 2400/- to Rs. 7500/- p.a. iii) Benefit: Upon diagnosis/hospitalisation for specified diseases, compensation ranging from Rs. 5,000/- to Rs.5 lakhs is paid. Pension Scheme i) Object: The object of this scheme is to provide pension to life members of the petitioner. ii) Payment: Admission fee is Rs. 3,000/- to Rs. 5,000/-. Every member of the scheme shall also pay an annual membership fee of Rs.500/-. Further, the minimum annual contribution to be made by every member of the scheme is Rs. 12,000/-. iii) Benefit: The pension is paid when a member of the scheme requests payment after she or he attains 60 years. 30% of the pension corpus of a member may be paid to the member at the time of starting the pension payment, if so requested by the member. The pension is then paid for the rest of the life of the member from the remaining 70% corpus amount of the member. Upon the death of a member, his nominee may similarly take a lump-sum payment from 30% of the corpus. Full maturity amount is paid to the nominee if pension for spouse is not opted for. If death occurs before the age off 60, the scheme provides for stated pay-outs. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices. The underlying basis for the non-taxability of such services was the concept that when a Club/Association provides services to its members, there is no separate recipient of the services provided by the Club/Association and that the services were effectively provided by the members of the Club/Association to themselves. The said basis of non-taxability was, however, removed by an amendment of the provisions of Section 2 (17) (e) and Section 7 (1) (aa) read with the Explanation thereto of the Central Goods and Services Tax Act, 2017 [CGST Act] and the Kerala Goods and Services Tax Act, 2017 [KGST Act] that introduced deeming provisions making the supply of services by a Club/Association to its members a taxable supply for the purposes of the levy of tax. The amendment that was introduced through the Finance Act, 2021 was also made retroactive with effect from 01.07.2017, thereby adding to the financial woes of the petitioner. 5. In the writ petition preferred by the petitioner, the petitioner sought the following reliefs: 1. declare that the provisions of Section 2 (17) (e) and Section 7 (1) (aa) and the Explanation thereto, of the Central Goods and Services Tax Act, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24, Sri. AR. L. Sundaresan, the learned Additional Solicitor General in W.A.No.1487 of 2024 and Sri. Mohammed Rafiq, the learned Special Government Pleader (Taxes) for the appellant in W.A. No. 468 of 2025. 8. The submissions of Sri. Arvind P. Datar, the learned senior counsel, duly assisted by Sri. P.R. Renganath, the learned counsel for the appellant in W.A.No.1659 of 2024, on the unconstitutionality of levy of GST on activities/transactions between a Club and its members are as follows: A. On the aspect of mutuality, the learned senior counsel would submit as follows: ● Identity between club and members: It is long established common law that there is identity between a club/association and its members, under the principle of mutuality. Consequently, there can be no sale/service by a club to its members. This position in law was recognised even in the 19th century in Graff v. Evans - [(1882) 8 QBD 373]. ● Principle applies even to incorporated clubs: That clubs/associations have long acted upon the faith of this position in law, and that this principle applies even to incorporated clubs, was recognised in Trebanong Working Men's Club and Institute Ltd. v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther valuable consideration. ● Mutuality survives 46th Amendment: Even the 46th Amendment did not do away with the basis of the principle that the club/association and its members are one and the same, further, even on its terms, the 46th Amendment extended only to supply of goods (and not to provision of services). ● The Supreme Court in State of West Bengal & Ors. v. Calcutta Club Ltd. - [2019 (29) GSTL 545 (SC)] emphatically held that the principle of mutuality continued even after the 46th Amendment. The said decision also recognises that the law has always been that the principle of mutuality extends even to incorporated clubs and not just to unincorporated clubs and that the 61st Law Commission Report which preceded the 46th amendment had not appreciated this. ● No service between club/association and its members: Calcutta Club (para 76) also recognised that the position in law was that there could be no service between a club and its members, confirming the decision in Ranchi Club v. Chief Commr. of Central Excise & Service Tax - [2012 SCC OnLine 306 : (2012) 51 VST 369]. Ranchi Club had laid down that the basic feature common in sale and services w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods", the State legislatures sought to expand this power by inserting an artificial definition in the sales tax legislations to the effect that "sale" would include a "works contract". This was struck down in Gannon Dunkerly ibid on the ground that the accepted meaning of a term in a constitutional phrase could not be statutorily expanded. ● What a constitutional provision is aimed at is to be construed based on the state of the law then in force. To expand the scope of such a provision by a statute would be to overreach the Constitution. In short, a phrase in the Constitution granting legislative power should be construed according to "known legal connotations" [see para 43 of BSNL, cited in para 16 of Calcutta Club]. ● When similar situations arose - in fact six different situations - where various States legislatures attempted to broaden the tax net by statutorily expanding the definition of "sale", the Supreme Court struck down each such amendment as being beyond the meaning of the word "sale" in the legislative entry in the Constitution (entry 54 of List II - "tax on sale or purchase of goods") were then added to the Constitution through six sub-clauses [(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members. A statutory amendment, howsoever creatively worded, and ingeniously couched as a clarification, would not suffice. ● Why a validating statute will not suffice: If judgments [e.g. YMIA, Ranchi Club, Calcutta Club] merely state a position of statutory law, it could be undone by a validating statute. But where the judgments recognise a long-standing principle of law, which has a bearing on the extent of a power bestowed by the Constitution to legislatures, then, that power can be enlarged only by a constitutional amendment and not by the legislatures through a statutory amendment. ● What could be done only by constitutional amendment earlier cannot be done by statutory amendment now: a) Indeed, the very fact that a constitutional amendment was required [46th Amendment] and that statutory definitions did not suffice [struck down in Young Men's Indian Association] its testimony that Section 71(1)(aa) is insufficient for its intended purpose. b) In fact, the 61st Law Commission expressly recognised that expanding the concept of "sale" for the purpose of legislative power of the States, could "be achieved only by amending the Constitution". c) In other w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position of law i.e., the mutuality of clubs and association. Jayam & Co. cited above [see para 19 of the SCC report], held that a new provision inserted for determining input tax credit could not be retrospective. ● Substantial unforeseen prejudice: The new levy is made effective from the year 2017. Consequently, SCN no. 58/2024-25 (GST) dt. 02-Aug-24 has been issued by the DRI (the 1st appellant herein) seeking to demand a huge sum of money from the appellant association for transactions done over the last 6 years. The appellant could have had no notion about such a levy and consequently no amounts were collected from the members towards the tax. The demands proposed in the said SCN are for GST on the admission fee, annual subscription fee, renewal fees, fraternity contribution, etc, and are as follows: a) Rs. 45.32 crores towards GST under Section 74(1), alleging suppression; b) interest from 01-Jul-17 onwards; c) penalty under Section 122(1) read with Section 74(1) of the CGST Act, 2017; d) personal penalty on three past Secretaries (i.e., Secretaries during the period from 2017-2023) of the respondent under Section 122(3). The above SCN is in addition to an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued notf. no.39/2021 dt. 21-Dec-21 specifying 01-Jan-22 as the date on which the aforesaid Section 108 comes into force. However, the said Section 108 itself states that the insertion of Section 7 (1) (aa) in CGST ACT 2017 shall be deemed to have been made with effect from 01-Jul-17. Thus, prior to 01-Jan-22 (or in any case 21-Dec-21) it could not have been known that GST ought to be paid by clubs/associations. Interest is merely compensation for belated payment of what ought to have been paid earlier. But, the question of payment earlier did not arise i.e., it was impossible to know, or to pay, earlier. It is trite that the law does not expect the impossible [lex non cognit ad impossibilia]. Thus, there can be no levy of interest for any period prior to 01-Jan-22. [see Star India (P) Ltd v. CCE - [(2005) 7 SCC 203], para 8] ● No penalty: There can be no retrospective imposition of penalty or confiscation of goods [JK Spinning & Wvg. Mills Ltd. v. UOI - [1988 SCR (1) 700]]. ● Retrospectivity falls foul of govt-constituted committee report #1 - manifestly arbitrary/unreasonable: Pursuant to the Vodafone saga, the Standing Committee on Finance presented its report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been said that death and taxes are equally undesirable aspects of human life. Yet, it can be said in favour of death that it is never retrospective. Retrospective taxation has the undesirable effect of creating major uncertainties in the business environment and constituting a significant disincentive for persons wishing to do business in India. While the legal powers of a Government extend to giving retrospective effect to taxation proposals, it might not pass the test of certainty and continuity. This is a major area where improvements should be attempted sooner rather than later .... [Emphasis added] ● Not "small repairs" or "play in the joints" or "greater leeway": It cannot be contended that the impugned amendment makes only "small repairs" or that the legislature is entitled to "play in the joints" or to "greater leeway in tax legislation", at least in the present case. Clearly, it is not "small repairs", "play in the joints", etc. when the well-established law of mutuality is sought to be abolished, or when a Supreme Court judgment is sought to be reversed, or when a liability of enormous proportions is sought to be imposed. ● Department's arguments invalid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erous even for the broader interests of the Revenue, for, if this proposition were to be accepted, it would, simply put, mean that henceforth all batch tax litigations ipso facto ought to be ruled in favour of the assessees. d) Income Tax PAN in the name of the respondent does not nullify mutuality: The contention of the Department that the respondent and its members have all along been different persons since the respondent association had obtained an income-tax PAN is bewildering. The reference to income-tax is - thankfully for IMA KSB - self-defeating for the Revenue. Indeed, income tax law has always recognised mutuality and continues to do so till date. PAN is obtained by clubs/associations only because there is non-mutual income such as interest on deposits, consideration paid by non-members, etc. ● In fine, looked at from the point of view of law or economics, the retrospective amendment unsettling well-established law, is unreasonable and arbitrary. It militates starkly against fairness in taxation and the rule of law. This is all the more when, as in the present case, the provision is retroactive. It is also disproportionate inasmuch as, whatever be the merits of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rictions imposed by the Constitution, no such limitations or restrictions can be read into such power. f) When no limitation or restriction with regard to the term supply or person has been provided for in the Constitution, the field is wide open for the Parliament and the Legislature to identify the person to be taxed and to define what would be supply and to define what would be referable to the term person. Accordingly Section 7 of the Act as it was rad with Section 2(17) and amendment 7 (1) (aa) which defines supply and thereby providing that supply of goods and services by an Association to its member will be deemed to be supplies for the purposes of this Act is well within the power of the Parliament and the Legislature. g) The following judgments are relied for the proposition that no restrictions can be placed on the power of the Parliament or the State Legislature to impose a tax and make necessary provisions to achieve the end of maximisation of collection of tax: (i) (2008) 2 SCC page 254 Karnataka Bank v. State of Andhra Pradesh Para 21, 22, 30, 33, 34, 35, 36, 37, 42, 43 and 50. (ii) (2012) 6 SCC 312 State of Madhya Pradesh v. Rakesh Kohli para 9, 15, 17, 20, 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant provisions of the Finance Act and the West Bengal Sales Tax Act which did not provide that an Association and its members can be considered as two different persons. The phrase used in Article 366A (29A) was only unincorporated association or body of persons. That basis is sought to be undone by introducing the amendment by way of Section 7 (1) (aa) and the explanation thereto. It is settled law that the Legislature has the power to amend the law and thereby remove the basis of an earlier judgment. On that ground also the attack to Section 7 (1) (aa) and the explanation thereto and Section 2 (27) (e) deserves to be rejected. The respondents rely upon the judgment in (2020) 5 SCC 274 - Union of India and Others v. Exide Industries and another para 7, 15, 16, 21, 25 to 27, 47. ● While amending Section 7 (1) by introduction of 7 (1) (aa) amendment has been introduced to the word 'supply' but not to the word 'service'. However there is no flaw in the same since under Section 9 the taxable event is supply of goods or services or both. Since it is the supply of goods and services which is a taxable event, the definition of supply and amending the said defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of a member and even dissolution of the society, property of the association is not allowed to be distributed among the members, but is to be given to any other non-profitable organisation having the same objects in view of the provisions contained in the above said Act. It is legal entity which can sue and can be sued in its own name. Even in case of any dispute between the society and its members, the society is entitled to initiate proceedings against its members in the court of law. As such the concept of mutuality and that the association and the members are one and the same would not arise. As there is no concept of mutuality, there is no locus for the IMA to challenge the impugned provisions on the ground of mutuality. ● IMA Kerala is engaged in diverse business ventures encompasing the provision of hotels, bar and guest houses, bio-medical waste treatment plant, construction of residential complexes, as well as the facilitation of health insurance for its members and their families. Some of the schemes floated by IMA, Kerala are as follows: ● IMA Kerala floated an entity named IMAGE, acronym for IMA Goes Ecofriendly, which has an annual turnover of arou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendments cannot given retrospective effect, the same is untenable and deserves to be rejected. It is settled law that the Parliament has got the authority to make laws prospectively and retrospectively. Only limitation can be that a vested right cannot be taken away by the retrospective enactment in the present case. The appellant relied upon the judgment in Jayam & Co. v. State of Tamil Nadu - [(2016) 15 SCC 125] wherein the entitlement of input tax was reduced to the extent tax collected at the time of sale of the goods if the goods are sold at a discount. It was contended that such a reduction of the entitlement of availing in the tax credit cannot be given retrospective effect. That was on the basis of the principle of law that a vested right cannot be taken away by retrospective amendment. That is when the assessee had the right to adjust the entire tax credit in full, by an amendment it cannot be retrospectively reduced and that a vested right was sough to be curtailed. The said ratio will not apply since there is no vested right of the appellant association which is being taken away. It is only the liability which was always on them is sought to be enforced by way of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect is incorrect and that part of he judgment deserves to be set aside and W.A. No. 1487/2024 deserves to be allowed. 10. The submissions of Sri. Mohammed Rafiq, the learned Special Government Pleader (Taxes) for the appellant in W.A. No. 468 of 2025, briefly stated, are as follows: ● The source of power to enact laws with respect to 'Goods and Services Tax', both intra-state and inter-state, is Article 246A of the Constitution of India. ● Clause (12A) of Article 366 of the Constitution defines 'goods and services tax' exhaustively as any tax on supply of goods, or services or both except taxes on supply of alcoholic liquor for human consumption. ● As per the inclusive definition provided in Clause (12) of Article 366, 'goods' includes all materials, commodities and articles. ● Clause (26A) of Article 366 provides a broad definition of 'services' as anything other than goods. ● The expression 'supply' appearing in Article 366 (12A) must not be interpreted in a narrow or pedantic sense; instead, the construction that is most beneficial to the broadest possible scope of the power to enact laws 'with respect to' Goods and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of Articles 246 and 254 of the Constitution and thus prevails over the Seventh Schedule and the expressions defined in Article 366 (29A). ● Tax on Goods and Services under the Central/State Goods and Services Tax Act, 2017 and scope for its levy on the provision of facilities or benefits by clubs, associations, societies, etc., to their members. ● The common law doctrine of mutuality cannot pose a limitation on the plenary power of the Union and the States to enact laws with respect to Goods and Services Tax, as conferred under Article 246A of the Constitution, including imposing the levy on clubs, associations, societies, or similar bodies incorporated or not providing facilities or benefits to their members. ● The power to make laws with respect to goods and services tax conferred on the Union or States under Article 246A is unconditional. ● A five-judge Constitution Bench in Union of India v. Gwalior Rayon Silk Mfg. (Wvg.) Co. Ltd - [(1964) 53 ITR 466] held that the legislative competence of the Union legislature or even of the State Legislature could only be circumscribed by express prohibition contained in the Constitution itself a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Presidency towns of Calcutta, Bombay and Madras. The Common Law of England was not adopted in the rest of India. Doubtless, Some of its principles were embodied in the statute law of our country. That apart, in the mofussil, some principles of Common Law were invoked by courts on the grounds of justice, equity and good conscience. It is, therefore, a question of fact in each case whether any particular branch of the Common Law became a part of the law of India or in any particular part thereof" Therefore, the applicability of the English common law doctrine of mutuality in the state of Kerala, an erstwhile Part-B State, is a question of fact. All along, no evidence has been produced by the IMA to prove the said fact. ● IMA is an incorporated society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act of 1955, which recognises the society as a distinct entity separate from its members. ● The common law, if at all can be termed as a law in force at the commencement of the Constitution, must yield to the legislation by a competent legislature in view of Article 372 (1). ● Scope of amendments made to Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legislature acting within its legislative field has the power of a sovereign legislature and could make its law prospectively as well as retrospectively. The principles so laid down by a five-judge Constitution Bench in The Tata Iron & Steel Co. Lid. v. The State of Bihar - [(1958) 9 STC 267] in the context of sales tax would squarely apply in the context of levy under the goods and services tax regime also. ● In R.C. Tobacco (P) Ltd. and another v. Union of India - [(2005) 7 SCC 725] it was held that a law cannot be held to be unreasonable merely because it operates retrospectively. The unreasonability must lie in some other additional factors. It was also held that the retrospective operation of a fiscal statute would have to be found to be unduly oppressive and confiscatory before it can be held to be so unreasonable as violative of constitutional norms. In the instant case, there is no finding that the retrospective operation given to subclause (aa) of Section 7 (1) is unduly oppressive, confiscatory or unreasonable. ● Applicability of dictum laid down in State of W.B. & Ors. v. Calcutta Club Ltd. - [(2019) 19 SCC 107], in the context of the present case. ` ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overcome the basis of earlier judgments of the Supreme Court on the aspect of mutuality, by introducing a new definition of supply through a legislative exercise and clarifying that a supply would also include a supply from a club to its members. Under ordinary circumstances, we would have had no reservations to the said settled position in law. Indeed the legislature has the power to enact validating laws that remove the basis of invalidity pointed out by the courts in relation to the earlier unamended law. However, we are in these proceedings concerned with a slightly different issue viz. whether it would be competent for a legislature to levy tax on a transaction when the taxable event in relation to the subject of taxation has not been recognised as such by the Constitution ? In other words, when the Constitution has understood a taxable transaction as necessarily involving two persons, can a legislature deem a transaction that does not involve two persons as a taxable transaction ? This is the limited point on which we find ourselves at variance with the views of the learned Single Judge in the impugned judgment, who found no merit in the argument of the writ petitioner that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existence of at least two persons - a provider and a recipient before one can infer either a "supply" or a "service" for the purposes of the levy. In other words, the concepts of self-supply or self-service are not envisioned under the Constitution for the purposes of the levy. 14. Article 246A of the Constitution, that confers simultaneous legislative powers on the Union and the States to make laws with respect to goods and service tax, uses the word "supply" without giving it an artificial meaning that would take in even a "deemed supply". In fact, even by the Constitution [46th Amendment] Act, 1982 when a deeming provision was introduced to bring transactions, that did not fit into the traditional concept of sale of goods, to sales tax, the exercise that was done was to amend the Constitution to deem those transactions as "Sales" or "Purchases". Thus, under Article 366 (29A), a tax on the "supply of goods" by an incorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration, was deemed to be a "tax on the sale or purchase of goods". In contrast to the above, what has been done through the present amendment to the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h for a consideration. The concept of "supply" and "service" as understood under the Constitution and the CGST/SGST Acts (before their amendment) both excluded transactions informed by the principle of mutuality ie. a supply/service from one entity to itself (self supply/self service). Thus, even if there is now a deemed "supply", based on the amendments effected to the CGST/SGST Acts, there is no deemed "service" in circumstances where the service is rendered by a club or association to its members, since the definition of service has not been amended. 17. It is also significant, as pointed out by the learned senior counsel Sri. Datar, that the Constitution has not been amended to deem a supply of service by a club or association to its members as a taxable service for the purposes of GST. The decision of the Supreme Court in State of West Bengal and Others v. Calcutta Club Ltd. - [(2019) 19 SCC 107] is authority for the proposition that the principle of mutuality has survived under the Constitution even after the 46th Amendment. If that be so, then the amendment exercise carried out by the Parliament would itself have to be seen as unconstitutional since it incorporates a defini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India and Others - relied upon by Sri. Mohammed Rafiq, the learned Special Government Pleader for the State, to contend that it is open to a legislature to define a word in a taxing Statute in a sense different from its popular meaning or a meaning that is given to it through judicial interpretation of the same word as used in the constitutional text. In Navnit Lal C. Javeri [supra], a Constitution Bench of the Supreme Court considered a challenge to the validity of Section 12 (1B) read with Section 2 (6A) (e) of the Indian Income-Tax Act, 1922. The appellant before the Court was a shareholder in a Private Limited Company and he impugned the statutory provisions that treated a loan advanced to him by the Company as a dividend for the purposes of taxation. His contention that Entry 82 in List I of the VIIth Schedule to the Constitution that dealt with "taxes on income other than agricultural income" did not justify the impugned provision because a loan advanced to a shareholder by a company cannot be treated as an 'income' in any legitimate sense, was rejected by the Supreme Court. The Court held that entries in the List had to be construed widely and when so construed the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21. Similarly in Skill Lotto Solutions Private Limited [supra], the Court considered the validity of Section 2 (52) of the CGST Act that defined "goods" to include actionable claims. The contention that an artificial definition of goods to include actionable claims could not withstand the test of constitutionality when the word "goods" was defined differently under the Constitution, was rejected by holding that "The Constitution-framers were well aware of the definition of goods as occurring in the Sale of Goods Act, 1930 when the Constitution was enforced. By providing an inclusive definition of goods in Article 366(12), the Constitution-framers never intended to give any restrictive meaning of goods." Thus, the Court did not find any contradiction between the meaning of the word as used in the Constitution and the meaning given to it under the Statute concerned. 22. The issues considered in the aforesaid judgments are clearly distinguishable from the issue that confronts us in these proceedings. The concepts of "supply" and "service" having been judicially interpreted as requiring at least two persons - a provider and a recipient, for inferring their existence, and the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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