2018 (9) TMI 1766 - HC - GST

Vires of amended subrule 5 of Rule 89 of the Central Goods & Services Rules, 2017 which has been given retrospective effect - Held that - Essentially, by virtue of this rule, in case of inverted tax structure of Service tax, the assessee; such as the petitioner, would not be able to claim refund of the differential service tax. The Government, as a subordinate legislature, cannot frame rules which deprives a person of such benefit. Notice returnable on 25th October 2018.

Summary

The petitioner challenged the vires of amended subrule [5] of Rule 89 of the Central Goods & Services Rules, 2017, which has retrospective effect. The rule prevents claiming refund of differential service tax in case of inverted tax structure of Servicetax. The petitioner argued that the Government cannot frame rules depriving a person of refund recognized by the Central Goods & Service Tax Act, 2017. Notice returnable on 25th October 2018.