2025 (1) TMI 212 - HC - GST

Constitutional validity of provisions of Rule 96 (10) of the CGST Rules, 2017 - Submissions also made that the Central Government itself though prospectively by notification dated 08.10.2024 has amended Rule 86 (4B) (b) wherein the provision 'in contravention of sub-rule (10) of Rule 96' has been omitted. HELD THAT - Issue notice.

Summary

In the case before the Allahabad High Court, the petitioner challenged the application of Rule 96(10) of the CGST Rules, 2017, which the Kerala High Court had previously struck down in M/s. Sance Laboratories Private Limited Vs. Union of India & Ors. The petitioner also pointed out that the Gujarat High Court's judgment in Cosmo Films Ltd. Vs. Union of India & Ors., which the authority relied upon, had been reviewed. Additionally, the Central Government had amended Rule 86(4B)(b) to omit the provision "in contravention of sub-rule (10) of Rule 96" as of October 8, 2024. The court issued a notice and ordered a stay on the recovery actions pursuant to the order dated April 16, 2024, as rectified on June 12, 2024, pending further orders. A counter affidavit is to be filed within six weeks, with a rejoinder affidavit due two weeks thereafter.