Challenge to section 174(2) of GST Act, 2017 paused pending related SLP; interim orders to continue awaiting final decision

The HC held the challenge to section 174(2) of the GST Act, 2017 will await the final outcome of the related SLP pending before the SC; until that disposal, existing interim orders in all connected matters shall continue to operate but remain subject to the Supreme Court's ultimate decision. The petition was disposed of with directions that interim reliefs remain in force pending the SC decision.

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Issues:
Challenge to section 174(2) of the GST Act, 2017.

Analysis:
The High Court dealt with a bunch of writ petitions challenging the validity of section 174(2) of the GST Act, 2017, which is identical to the provision in the Kerala State Goods and Services Tax Act, 2017, Punjab State Goods and Services Tax Act, 2017, and Haryana State Goods and Services Tax Act, 2017. Previous cases in Kerala upheld the provision as constitutional and within the department's competence. The concerned assesses appealed to the Supreme Court in a related case, where leave was granted and coercive actions were restrained pending the final decision. The High Court had issued interim orders in the present cases awaiting the Supreme Court's decision. Now that the Supreme Court has granted leave, the High Court directed that the challenge to section 174(2) of the GST Act, 2017 would be subject to the final outcome in the Supreme Court's decision in the related case. The High Court disposed of the writ petitions, maintaining the interim orders until the Supreme Court's final decision.

This judgment clarifies that the final adjudication on the challenge to section 174(2) of the GST Act, 2017 will be done by the Supreme Court in a related case. The High Court decided to wait for the Supreme Court's decision and maintained the interim orders passed in the present cases until the Supreme Court's final decision. All pending applications were also disposed of in line with this decision. The High Court's approach ensures consistency and alignment with the Supreme Court's proceedings, providing clarity and direction for the parties involved in the writ petitions.

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