2023 (12) TMI 1274 - HC - GST

Judicial Intervention Halts Tax Recovery Measures, Suspends Coercive Actions During Ongoing GST Rule 96(10)(b) Dispute

HC granted ad-interim relief challenging Rule 96(10)(b) of GST Rules, preventing coercive recovery against petitioner during ongoing adjudication ... Constitutional validity of Rule 96(10)(b) of Central Goods and Service Tax Rules, 2017, / State Goods and Service Tax Rules 2017 - HELD THAT:- The order in UNJHA AGRO COMPANY THROUGH PARTNER JANAK PATEL VERSUS UNION OF INDIA [2023 (4) TMI 1268 - GUJARAT HIGH COURT] is perused, wherein, this Court has observed It is an admitted position that other petitions relying the vires of Rule 96(10)(b), have been entertained by this Court and the same are pending consideration. In those petitions, interim relief is granted to those petitioners concerned which is evident from the orders annexed in the compilation of Civil Application. Issue NOTICE, making the same returnable on 21ST JUNE, 2023. Issues involved: Challenge to the validity of Rule 96(10)(b) of Central Goods and Service Tax Rules, 2017 and State Goods and Service Tax Rules 2017 as ultra vires and contrary to the Integrated Goods and Service Tax.Summary:The petitioner challenged the validity of Rule 96(10)(b) of the GST Rules, claiming it to be ultra vires and contrary to the Integrated Goods and Service Tax. The Coordinate Bench of the Court had granted interim relief in similar matters. The Court observed that other petitions on the same issue were pending, and interim relief had been granted in those cases. The petitioner was granted ad-interim relief to prevent coercive recovery during adjudication proceedings. The Court directed that adjudication proceedings could continue, but there should be no coercive recovery against the petitioner. Notice was issued to the parties, returnable on 21st June 2023.