High Court grants stay on directions related to CGST Act, 2017. Petition allowed, further examination scheduled.

The High Court granted a stay on the operation of directions in a specific order related to the Central Goods and Services Tax Act, 2017. The petition was allowed subject to exceptions, and notice was issued to the respondents. The stay was based on the petitioner's argument that they were not obligated to pass on input tax credit or tax reductions to flat buyers post-July 2017. The Court scheduled a further examination of this issue after the respondents submitted their returns, with deadlines set for filing affidavits and a subsequent hearing.

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Issues involved: Stay on operation of directions in a specific order related to the Central Goods and Services Tax Act, 2017 and rules framed thereunder.

The High Court, comprising Hon'ble Mr. Justice Rajiv Shakdher and Hon'ble Mr. Justice Talwant Singh, allowed the petition subject to exceptions. Issue notice was directed to the respondents, with Mr. Ravi Prakash accepting service on behalf of respondent nos. 2 and 3, and Mr. Vikas Mahajan accepting service on behalf of respondent no. 1. The Court ordered a stay on the operation of the directions contained in paragraph 23 of an order dated 09.12.2020 passed by respondent no. 2. This stay was granted as per the petitioner's contention that post 01.07.2017, they were not required to pass on input tax credit or reduction in tax to flat buyers with whom negotiated contracts were executed, as no reduction in taxes occurred. The Court decided to examine this aspect further after the respondents filed their returns. Mr. Ravi Prakash was granted four weeks to file a counter-affidavit, with any rejoinder to be filed before the next hearing scheduled for 30.04.2021.

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