GST exemption claim by a notified area authority remains under scrutiny, with final order restrained during pendency.

GST liability was examined in relation to a petitioner claiming status as a notified area authority and asserting exemption on the basis that it qualified as a local authority under the exemption notifications and reverse charge framework. The Court issued notice and allowed the respondent to continue with the show cause proceedings, but restrained passing of any final order during pendency of the petition without the Court's permission.

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Issues: Whether the petitioner, claimed to be a notified area authority, is liable to GST on collection of tax and whether interim protection was warranted against passing of a final order during pendency of the petition.

Analysis: The submissions addressed the petitioner's claim of exemption from GST on the basis of its statutory status, the relevant exemption notifications, reverse charge provisions, and the contention that it falls within the definition of local authority. The Court issued notice and permitted the respondent to continue with the hearing of the show cause notice, while restraining the passing of any final order without permission of the Court during the pendency of the petition.

Outcome: Notice issued. The respondent may continue with the proceedings, but no final order shall be passed without permission of the Court during pendency of the petition.

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