Gauhati HC Upholds Judgment Declaring Notification No. 56/2023-CT "Ultra Vires" to CGST Act; Review Petition Dismissed.

The Gauhati HC dismissed the review petition seeking reconsideration of its previous judgment that declared Notification No. 56/2023-CT "ultra vires" to the CGST Act, 2017. The court held that the subsequent ratification by the GST Council did not rectify the absence of a prior recommendation as required under Section 168A of the CGST Act. The court emphasized that recommendation and ratification are distinct processes and found no "error apparent" in the original judgment, leading to the dismissal of the review application.

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In the case before the Gauhati High Court, presided over by Justice Devashis Baruah, the petitioner sought a review of the court's judgment dated 19.09.2024, which had declared Notification No. 56/2023-CT as "ultra vires" to the Central Goods and Services Tax Act, 2017, and consequently quashed it. The review application was based on the argument that the notification was later ratified by the GST Council on 22.06.2024, suggesting an "error apparent" in the original judgment.

During the hearing, the court questioned whether a subsequent ratification could rectify the lack of a prior recommendation required under Section 168A of the CGST Act, 2017. The court noted that a recommendation initiates a process through a proposal, while ratification pertains to approval, and these concepts are not interchangeable.

The standing counsel for the petitioner, Mr. S.C. Keyal, was unable to address this query satisfactorily. Consequently, the court found no basis to exercise its review jurisdiction and dismissed the review petition.

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