2025 (4) TMI 1523 - SCH - GST

Services held employer-employee for GST based on Income Tax Act; petitioner can raise defenses before issuing authority

SC held that the services constitute an employer-employee relationship for GST purposes, based on application of Income Tax Act provisions, supporting ... Levy of GST - clear case of employer-employee relationship, which is apparent from the application of the provisions relating to employees under the Income Tax Act, 1961 - HELD THAT:- As only a show cause notice has been issued, the petitioner can raise all pleas and contentions before the authority which had issued the show cause notice. The same will be examined effectively and fairly. Application disposed off. The Supreme Court, through an order by Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K.V. Viswanathan, addressed a petition concerning the employer-employee relationship under the Income Tax Act, 1961. The Court noted the petitioner's contention that the relationship is 'clear' and that GST is not payable as per a circular issued by the Central Board of Indirect Taxes and Customs. However, since only a show cause notice had been issued, the Court held that the petitioner 'can raise all pleas and contentions before the authority which had issued the show cause notice,' which must 'proceed expeditiously and decide the show cause notice, preferably, within a period of six months.' The Court declined to interfere with the impugned judgment and dismissed the special leave petitions, disposing of pending applications.