2023 (12) TMI 1397 - HC - GST

Quashing of order passed u/s 74 of the GST Act on the ground that the petitioners are liable to pay GST on the amount of discount received by it on purchase of the motor vehicles contrary to the circular issued by Central Board of Indirect Taxes and Customs and the appellate orders passed under similar provisions under the Finance Act - HELD THAT - When the matter was taken up for passing the order it was found that the appellate order relied upon by the petitioners is under challenge before the CESTAT. In such circumstances the petition is required to be kept pending till the CESTAT decides such issue. Issue Rule returnable on 30th April 2024. Ad interim granted earlier to continue as interim relief till the final disposal of this petition.

Summary

In the case before the Gujarat High Court, presided over by Honourable Justices Biren Vaishnav and Bhargav D. Karia, the petitioners sought to quash an order dated 21.12.2021 issued under Section 74 of the GST Act. The petitioners argued that they were incorrectly held liable to pay GST on discounts received for motor vehicle purchases, contrary to a circular from the Central Board of Indirect Taxes and Customs and similar appellate orders under the Finance Act. The court noted that the petitioners' reliance on an appellate order is currently under challenge before the Customs Excise and Service Tax Appellate Tribunal (CESTAT), necessitating the petition's pendency until CESTAT's decision. The court clarified that the petitioners challenged the order-in-original without pursuing alternative remedies, asserting the respondent authorities' obligation to follow the appellate order in identical circumstances. The court issued a rule returnable by April 30, 2024, and continued the interim relief granted earlier until the petition's final resolution.