2025 (3) TMI 554 - HC - GST

Seeking a writ order or direction under Article 226 of the Constitution of India seeking to quash the order - whether the Petitioner was liable to deduct TCS (Tax Collected at Source) @1% towards GST of the transactions entered into on the portal of the Petitioner and not having done so would it be liable to pay this GST or otherwise? - HELD THAT - As far as the interim relief is concerned having heard Mr. Mishra the learned counsel appearing on behalf of Respondent Nos. 2 and 3 and Mr. Sriram Sridharan the learned counsel appearing on behalf of the Petitioner a prima facie case is made out for grant of interim relief. Stand over to 25th March 2025.

Summary

The Bombay High Court's judgment involves a Writ Petition filed under Article 226 of the Constitution of India, challenging an order dated 30th April 2024, issued by Respondent No. 3. The primary legal issue is whether the Petitioner, allegedly not an "Electronic Commerce Operator," is liable to deduct Tax Collected at Source (TCS) at 1% for transactions on its portal. The Petitioner argues it merely facilitates buyer-seller meetings and is not privy to contracts, thus not liable for TCS. Additionally, the Petitioner claims that the seller has already paid the full tax, and enforcing the impugned order would result in double taxation. Furthermore, the Petitioner contends that many transactions involved exempted goods, negating the need for TCS deduction.The Respondents sought time to file a reply, and the court granted this, setting a deadline of 21st March 2025. The case is scheduled for admission on 25th March 2025. The court found a prima facie case for interim relief and stayed the implementation and execution of the impugned order until further notice. The order will be digitally signed and can be acted upon via fax or email.