Omission of Rule 96(10) removes the statutory basis for proceedings founded solely on it, making such recovery orders invalid.

Omission of Rule 96(10) of the Central Goods and Services Tax Rules without a saving clause removes the statutory foundation for proceedings and recovery orders founded solely on that rule; consequently such orders cannot lawfully survive post-omission. The analysis addresses the rule's relationship to Section 16 of the IGST framework and considers challenges under principles of equality and freedom of trade; where no independent statutory or factual basis exists apart from the omitted rule, those proceedings and recovery demands are rendered without legal basis and are liable to be set aside, favouring the taxpayer.

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Issues: Whether the omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (w.e.f. 08.10.2024) without a saving clause renders proceedings and recovery orders issued under that rule without any legal basis and therefore liable to be set aside.

Analysis: The Court examined the legal effect of the omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017, including whether proceedings founded solely on that rule survive after its omission in the absence of a saving clause. The Court considered the relationship of Rule 96(10) to Section 16 of the Integrated Goods and Services Tax Act, 2017 and constitutional challenges raised under Article 14 and Article 19 of the Constitution of India. The Court also reviewed prior decisions of the High Court on identical questions and noted that where an impugned order is founded exclusively on a statutory rule which is subsequently omitted without a saving provision, the statutory basis for such order ceases to exist.

Conclusion: The omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (w.e.f. 08.10.2024) without a saving clause removes the legal foundation for proceedings and recovery orders issued solely under that rule; accordingly, the impugned recovery orders dated 21.12.2023 are set aside. The decision is in favour of the assessee.

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