2022 (11) TMI 1366 - HC - GST

Tax Rule Challenge: Petitioner Contests CGST and IGST Provisions, Seeks Mandamus Against Integrated Tax Regulations

HC addressed a tax dispute challenging CGST Rule 96(10) and IGST Act Section 16 as unconstitutional. Petitioner sought mandamus to invalidate these ... Constitutional Validity of sub-Rule (10) of Rule 96 of CGST Rules, 2017 - vires of section 16 of the IGST Act - refund of Integrated Tax on goods exported - HELD THAT:- This group of matters are now posted for hearing on 24.11.2022. Notice returnable on 24.11.2022. Issues:Challenge to sub-Rule (10) of Rule 96 of CGST Rules, 2017 and section 16 of the IGST Act as ultra vires; Entitlement to pay Integrated Tax on exported goods and claim refund; Quashing of proceedings initiated against the Petitioner; Grant of ex-parte ad-interim relief; Matters from 2019 pending attention.Analysis:1. The Petitioner has approached the Court challenging sub-Rule (10) of Rule 96 of CGST Rules, 2017 and section 16 of the IGST Act as ultra vires. The prayers include seeking a Writ of Mandamus to strike down the mentioned sub-rule and sections as ultra vires various provisions of the Constitution. Additionally, the Petitioner seeks a declaration of entitlement to pay Integrated Tax on exported goods and claim a refund under Section 16(3) of the IGST Act, 2017. The Court has been requested to quash proceedings initiated against the Petitioner through a Show Cause Notice and to grant any other relief deemed fit in the circumstances.2. During the hearing, Mr. Paresh Dave, the advocate for the Petitioner, highlighted that various matters from 2019 are pending attention before the Court. These matters have been scheduled for a hearing on 24.11.2022 and are to be tagged with specific Civil Applications from 2019. The Court has issued a notice returnable on the mentioned date, and in the interim, directed that the Respondents shall not make any coercive recovery from the Petitioner for the refund of integrated tax already paid. Direct service has been permitted on the same day as the order.This detailed analysis captures the essence of the legal judgment, outlining the issues raised by the Petitioner, the arguments presented, and the directions given by the Court regarding the pending matters and the relief sought by the Petitioner.