Sikkim HC to Decide on Rule 31A of the CGST Rules; Next Hearing on December 05, 2023

By:

The Hon’ble Sikkim High Court heard the case Delta Corp Limited and Anr. v. Union of India and Ors. [W.P.(C) No. 41 of 2023] on October 20, 2023.

The counsel for the Delta Corp Limited and Anr. (“Petitioners”) have challenged, inter alia, Rule 31A of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) as ultra vires to the Constitution of India. The Petitioners have also challenged the Show Cause Notice (“SCN”) dated September 27, 2023, issued against the Petitioners, Rate Notification dated June 28, 2017, Circular dated January 04, 2018, and FAQ clarification dated September 06, 2017.

The counsel for the Petitioners further submitted that, the Petitioners have been corresponding with the concerned authorities as they were facing difficulty in determining the value of the supply made, particularly after the insertion of Rule 31A of the CGST Rules. However, the Petitioners were constrained to approach the Court challenging vires of Rule 31A of the CGST Rules. The Counsel for the Petitioners also submitted that, the need to respond to SCN would not arise if the Petitioners are successful in their challenge to Rule 31A of the CGST Rules. The Deputy Solicitor General of India submitted that, at this stage only SCN has been issued and further steps would be taken only after the receipt of reply from the Petitioners.

The matter has been listed for filing of reply and further hearing on December 05, 2023.

(Author can be reached at info@a2ztaxcorp.com)

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.