GST demand order under Section 74 set aside following retrospective amendment and GST Council decision

The Orissa HC allowed a writ petition challenging a GST demand order for FY 2017-18 under Section 74 of the CGST Act. The petitioner relied on the GST Council's 31st meeting decision and retrospective amendment to Section 50 by the Finance Act, 2021. The Court followed its earlier decision in a similar case, which the Junior Standing Counsel conceded was directly applicable and rendered the demand untenable. The HC set aside the original order and remitted the matter for reconsideration in accordance with law, considering the previous ruling. The writ petition was disposed of accordingly.

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The Orissa High Court, through Hon'ble Chief Justice Harish Tandon and Hon'ble Mr. Justice Murahari Sri Raman, allowed the writ petition challenging the order dated 30.01.2025 by the Superintendent of GST & Central Excise, Kendrapara Range. The petitioner contested the GST demand for FY 2017-18 under Section 74 of the CGST Act, relying on the GST Council's 31st meeting decision and retrospective amendment to Section 50 by Section 112 of the Finance Act, 2021. The Court noted reliance on the earlier decision in *Utkal Automobile Private Limited v. Union of India & Others*, W.P.(C) No.10277/2020, dated 11.07.2022, which the Junior Standing Counsel conceded was directly applicable and rendered the impugned demand untenable. The Court set aside the original order and remitted the matter for reconsideration strictly in accordance with law, taking into account the 11.07.2022 ruling. The writ petition was accordingly disposed of.

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