Omission of a fiscal rule without a saving clause extinguishes pending refund recovery proceedings founded solely on that rule.

Where an IGST refund recovery proceeding rested solely on alleged breach of Rule 96(10) of the CGST Rules, the omission of that rule without any saving clause meant the adjudication could not continue. The Court applied the principle that omission of a rule does not attract Section 6 of the General Clauses Act, 1897 in the same way as repeal of a Central Act or regulation, so pending proceedings founded exclusively on the omitted rule lapse. The recovery order was therefore unsustainable and was quashed, with consequential relief granted.

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Issues: Whether the adjudication confirming recovery of IGST refund could survive after omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017, in the absence of any saving clause.

Analysis: The dispute turned entirely on the validity of continuing proceedings based on an alleged contravention of Rule 96(10), which was the foundation of the show-cause notice and the order confirming recovery. The Court noted that Rule 96(10) stood omitted by Notification No. 20/2024-Central Tax with effect from 8 October 2024, and that the impugned order was passed thereafter. Relying on the effect of omission as explained in binding precedent, the Court held that, unlike repeal of a Central Act or regulation, omission of a rule does not attract Section 6 of the General Clauses Act, 1897 unless a saving provision is enacted. In the absence of any such saving clause, pending and incomplete proceedings founded solely on the omitted rule could not be sustained.

Conclusion: The order confirming the demand and recovery could not survive and was liable to be quashed.

Final Conclusion: The writ petition succeeded and the impugned adjudication was set aside with consequential relief.

Ratio Decidendi: Where a fiscal rule forming the sole basis of adjudication is omitted without a saving clause, pending proceedings founded exclusively on that rule lapse and cannot be continued or sustained.

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