Writ Petition challenging Gujarat High Court decision in case of Cosmo Films

by | Dec 29, 2020 | Insight

We shared our update titled NITYA Insight | Issue 198 | Availability of output GST refund to Advance Authorization holders – Impact of Gujarat High Court decision wherein we discussed High Court’s finding that Notification No.54/2018 – Central Tax dated October 9, 2018 (‘Notification’) amending Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’) is applicable retrospectively from October 23, 2017.

This is to further update you that on same issue, writ petition was filed in Zaveri and Co. Pvt. Ltd. v. UOI, 2020-VIL-653-GUJ challenging aforesaid findings of High Court in Cosmos ruling. In this case, basis Cosmos ruling, the department issued notice to the Petitioner. The Court has admitted writ petition and stayed notice till next date of hearing.

NITYA Comments:

The current writ petition challenges incorrect conclusion of High Court in Cosmos ruling which we highlighted in trailing mail. A positive ruling on this issue will bring an end to avoidable litigation wherein notices have been issued to many exporters seeking to deny IGST benefit availed during October 23, 2017 to October 8, 2018. However, importers importing goods under Advance Authorization and availing IGST exemption will still need to justify their claim post October 9, 2018. Exporters need to undertake detailed analysis and craft suitable strategy on way forward in this regard.

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