2025 (3) TMI 766 - HC - GST

Challenge to section 174(2) of the GST Act 2017 - HELD THAT - The issue involved in the present petition stands finally adjudicated by this Court in Tecnimont Spa India Project Office vs. State of Punjab and another 2024 (12) TMI 1223 - PUNJAB AND HARYANA HIGH COURT wherein it was held that we propose to dispose of all these writ petitions and direct that the challenge to section 174(2) of the GST Act 2017 would be subject to the final outcome of the decision in the case of T.S. Belaraman 2024 (5) TMI 1498 - SC ORDER . This Writ Petition also disposed off in the aforesaid terms.

Summary

The Punjab and Haryana High Court, presided over by Hon'ble Justices Sanjeev Prakash Sharma and Sanjay Vashisth, addressed a writ petition concerning the challenge to Section 174(2) of the GST Act, 2017. The issue had been previously adjudicated in the case "Tecnimont Spa India Project Office vs. State of Punjab and another," where the court upheld the provision as constitutional and within the department's competence.The petitioners had challenged the vires of Section 174(2) in various state GST Acts, similar to a prior case in Kerala, which was decided in favor of the Revenue. The Kerala High Court's decision was appealed to the Supreme Court in "T.S. Belaraman vs. The Commercial Tax Officer and others," where the Supreme Court granted leave and issued an interim order restraining the Revenue from taking coercive steps.In light of the Supreme Court's pending final adjudication in T.S. Belaraman, the High Court decided to dispose of the current writ petition, directing that the challenge to Section 174(2) remains subject to the Supreme Court's final decision. The interim orders previously issued by the High Court will continue to operate until the Supreme Court's resolution. All pending applications were disposed of accordingly.