2023 (12) TMI 424 - HC - GST

Validity of Rule 96(10)(b) of Central Goods and Service Tax Rules, 2017, / State Goods and Service Tax Rules 2017 - HELD THAT - Reliance placed in the order dated 06.04.2023, passed by the Coordinate Bench of this Court in CA (For Stay) No. 1 of 2023 in Special Civil Application No. 7711 of 2021 2023 (4) TMI 1268 - GUJARAT HIGH COURT , whereby, the Court has granted interim relief in favour of the petitioner, therein. Issue NOTICE, making the same returnable on 21ST JUNE, 2023.

Summary

Issues involved: Challenge to the validity of Rule 96(10)(b) of Central Goods and Service Tax Rules, 2017, and State Goods and Service Tax Rules 2017 as ultra vires and contrary to the Integrated Goods and Service Tax.

Summary:

Issue 1: Validity of Rule 96(10)(b) of GST Rules

The petitioner challenged the validity of Rule 96(10)(b) of Central Goods and Service Tax Rules, 2017, and State Goods and Service Tax Rules 2017, as ultra vires and contrary to the Integrated Goods and Service Tax. The Coordinate Bench of the Court had issued notice in similar matters and granted interim relief in favor of other petitioners. The Court observed that the prayer in the petition was to declare the rule as ultra vires of Article 14 of the Constitution of India and to set aside proceedings initiated by the authority. The Court noted that other petitions challenging the same rule had been entertained, and interim relief was granted to those petitioners. In light of this, the petitioner was entitled to ad-interim relief, and the adjudication proceedings could continue without coercive recovery against the petitioner.

Conclusion:
The Court issued notice for the matter to be returnable on 21st June 2023. Adjudication proceedings were allowed to proceed, but no coercive recovery was permitted against the petitioner during this time.