PCB to move SC as State rejects GST share demand

ST CORRESPONDENT
Saturday, 2 February 2019

DN Yadav said, “Every month, the State Government collects Rs 1,200 crore as taxes from the cantonment. In return, we are not getting anything. Now, the estimated balance with the State as on April 2019 will be Rs 10 crore.”

PUNE: The Maharashtra Government has rejected the Pune Cantonment Board's (PCB) demand to compensate it for the LBT share from GST.

PCB CEO DN Yadav said in the general body meeting held on Thursday that they would file a writ petition against the State and the Union governments in the Supreme Court.

Meanwhile, Yadav will write a letter to the chief minister’s secretary requesting him to allot the share of GST.

On January 3, elected members of the cantonment, along with MP Sanjay Kakade, had a meeting with Union Finance Minister Arun Jaitley to discuss the issue of allocating GST share to the Cantonment, but the minister said the State government is the statutory authority to allocate the share of GST. Therefore, the ward members, along with Yadav, met with CM Devendra Fadnavis on January 9. The CM said he had handed over the file to the Urban Development Department.

During the General Body meeting of the PCB held on Thursday, Yadav said the State Government rejected the PCB's demand to allocate its GST share.

Yadav said, “Every month, the State Government collects Rs 1,200 crore as taxes from the cantonment. In return, we are not getting anything. Now, the estimated balance with the State as on April 2019 will be Rs 10 crore.”

PCB President Maj Gen Prithi Singh said, “Earlier, had expenditures on projects been made carefully when the cantonment had revenues, this day wouldn't have arrived.”

Yadav said, “We will not take any big projects for now and concentrate on revenue generation. We will file a writ petition against the State and Union governments in the Supreme Court."

LEGAL OPINION
Integra Legal, the Panel Advocate firm hired by the Board at New Delhi, in their legal opinion advised that the Cantonment Boards are treated as municipalities for the purposes of receiving grants and allocations as per the Cantonment Act. Therefore, the Pune Cantonment Board should file a writ petition seeking directions to the State Government for suitable amendment to the Maharashtra Goods and Services (compensation to local bodies) Act, 2017 by including Cantonments within its purview. 

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