Good-faith protection under GST cannot be prejudged before proceedings begin; premature observation was expunged.

An interim observation on the availability of good-faith protection under section 157 of the GST Act was held to be inappropriate because no suit, prosecution, or other proceeding against the officers had yet begun. A good-faith clause is a defence to be examined on the facts of the individual case when the statutory functionary's conduct is directly in issue, so any pre-emptive view on that protection could prejudice later adjudication. The impugned observation was expunged, and the matter was disposed of in favour of the appellant.

---

---

Issues: Whether the High Court's observation that the good-faith protection under section 157 of the GST Act may not be available to the officers was liable to be expunged.

Analysis: The observation was made in an interim proceeding before any suit, prosecution, or other legal proceeding against the officers had been initiated. A good-faith clause operates as a defence in proceedings where the statutory functionary's conduct is directly in issue, and the court deciding such a defence must do so on the facts of the individual case. A tentative pronouncement on the availability of such protection, made in advance of any such proceeding, was held to be inappropriate because it could prejudice the integrity and independence of any future adjudication.

Conclusion: The impugned observation was expunged and the appeal was disposed of in favour of the appellant.

---