Case Title: Delta Corp Limited & Anr. V. Union of India & Ors.
Decided on October 21, 2023.
Case No.: WP(C) No. 41 of 2023.
CORAM: HON’BLE MR. JUSTICE BHASKAR RAI PRADHAN, J.
Introduction
In the present petition, the petitioner challenged the validity of Rule 31A of the Central Goods and Service Tax Rules, 2107 in the light of the constitution of India and also challenged the show cause notice dated 27.09.2023 issued against the petitioner. The rate notification date is 28.06.2017, the circular date is 04.01.2018 and the FAQ clarification date is 06.09.2017. On observing the facts and circumstances of the present case the Hon’ble High Court stays the notice served to the petitioner, and learned counsel for the parties are requested not to delay the proceeding.
Facts of the case
The petitioner challenged Rule 31A of the Central Goods and Services Tax Rules,20127 ultra vires to the constitution of India. The petitioner also challenged the show cause notice dated 27.09.2023 issued against the petitioner; the rate notification dated 28.06.2017; the circular date 04.01.2018 and the FAQ clarification date 06.09.2017. It is submitted that Rule 31A was submitted in the year 2108 and the petitioner was shown cause notice only in 2023.
Court’s observation
The learned counsel for the petitioner submitted that it is the petitioner who is corresponding with the concerned authority regarding the difficulty faced by the petitioner in determining the value of the supply made by them, particularly after the insertion of rule 31A. It is also submitted by the petitioner that if the challenge of Rule 31A is successful then the question of responding to the show cause notice will not arise. The Hon’ble High Court on observing the facts and circumstances of the case and after hearing the learned counsel for both parties. The court issued notice to all parties on the interim application and asked the Union of India, DGGI, State of Sikkim, and GST Council, among other respondents, to file their replies within two weeks.
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Written by: Aamir Hussain.
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