Bombay High Court Issues Notice On Plea Challenging CGST Rules

The Bombay High Court on Monday issued notice to Maharashtra government and central government in a petition challenging amendment to Central Goods and Service Tax Rules, 2017 (CGST Rules).

"Petitioner is challenging both CGST as well as MGST Rules in this regard. Therefore, notice has to be issued to the learned Attorney General of India as well as the Advocate General", the court stated.

Justices K.R. Shriram and A.S. Doctor, were dealing with a writ petition challenging the amendment to Rule 21A of the CGST Rules, 2017.

In the present case the petitioner, SAT Industries Limited, had received a show cause notice alleging that it had received its GST registration certificate fraudulently. The notice suspended the GST registration of the petitioner. The petitioner approached the High Court challenging the notice and amendment to Rule 21A of the CGST Rules, 2017.

Earlier, Rule 21A(2) of the CGST Rules 2017 provided for a reasonable opportunity of being heard before suspension of registration. However, this portion has been deleted via notification dated 22nd December, 2020.

Petitioner is challenging the omission of the words "after affording the said person a reasonable opportunity of being heard" in Rule 21A(2).

Senior Advocate Vineet Kothari for the petitioner submitted that this goes against the principle of natural justice.

The court directed the respondents to file reply within three weeks of receipt of notice and issued an interim stay on the suspension of the petitioners GST registration.

Case no – Writ Petition no. 3643 of 2022

Case Title – SAT Industries Limited v. Union of India & Anr.

Coram – Justice K.R. Shriram and Justice A.S. Doctor

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