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TMI Blog2023 (9) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated under Rule 5A(2) and which may pertain to or be pending on the date when CGST came into effect would stand saved by virtue of Section 174 of the CGST. The Division Benches of this Court in AARGUS GLOBAL LOGISTICS PVT. LTD. VERSUS UNION OF INDIA ANR. [ 2020 (3) TMI 811 - DELHI HIGH COURT] andVIANAAR HOMES PRIVATE LIMITED VERSUS ASSISTANT COMMISSIONER (CIRCLE-12) , CENTRAL GOODS SERVICES TAX, AUDIT-II, DELHI ORS. [ 2020 (11) TMI 150 - DELHI HIGH COURT] proceeded to accept the submission addressed on behalf of the respondents and held that the proceedings which had already been initiated or which related to a period prior to the repeal of the Act would stand saved. However, it appears that the decisions in TRAVELITE (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n/audit of records and documents. 3. It becomes pertinent to note that the validity of Rule 5A(2) of the Rules and in terms of which audit and inspection is sought to be initiated came to be struck down as being ultra vires the Act by a Division Bench of our Court in Travelite (India) v. Union of India 2014 SCC Online Del 3943. 4. Subsequently and it would appear from the record that the respondents in order to validate the action initiated in terms of Rule 5A(2) introduced clause (k) in Section 94 of the Act. Clause (k) as introduced in that provision sought to confer a power to frame rules in respect of imposition of service tax on persons for the proper levy and collection of tax, of duty, furnishing of information, keeping rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded to accept the submission addressed on behalf of the respondents and held that the proceedings which had already been initiated or which related to a period prior to the repeal of the Act would stand saved. 8. However, it appears that the decisions in Travelite and Mega Cabs were not brought to the notice of the Division Benches and the matters appear to have been argued as if Rule 5A continued to exist on the statute book. That would clearly appear to be a factual inaccuracy. 9. We are further and prima facie of the opinion that notwithstanding the judgments in Travelite and Mega Cabs having been placed in abeyance, the declaration of invalidity would not stand effaced. 10. Since Mr. Singh, learned Standing Counsel was in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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