Demand Order to Be Set Aside as It Was Non-Speaking and Didn’t Make Any Reference of Notification Taking Away Exemption Benefit | HC

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GST Exemption Demand

Case Details: Smt Angoori Devi Educational and Cultural Society (Regd.) v. Union of India - [2024] 169 taxmann.com 515 (Allahabad)

Judiciary and Counsel Details

  • Arun Bhansali, CJ. & Kshitij Shailendra, J.
  • Naveen Sinha, Nipun Singh & Ritaj Vikram Singh for the Petitioner.
  • Abrar Ahmad, Anjali Upadhya, Ankur Agarwal, (S.C.) & Shivam Yadav for the Respondent.

Facts of the Case

The petitioner, engaged in constructing a higher secondary school under a government contract, had entered into a lease agreement with the Greater NOIDA Industrial Development Authority on December 5, 2023. The GST Authority issued a GST demand of ?5,52,31,637 against the petitioner.

The petitioner contended that the construction work qualified for GST exemption and emphasized that the GST demand was baseless, as it failed to reference any notification withdrawing the exemption or demonstrate that the petitioner did not meet the conditions for exemption.

The department contended that changes in exemption requirements justified the demand but did not provide any specific references or substantiation in the demand notice.

High Court Held

The High Court noted that the GST demand was a non-speaking order and issued without proper consideration of applicable exemption notifications and rulings. It was also observed that the demand contradicted established laws and rulings. Therefore, the Court set aside the demand and remanded the case for reconsideration.

List of Cases Referred to

  • M/s Ram Kamal Healthcare Pvt. Ltd. v. Union of India and 3 others Writ Tax No.1435 of 2018 (para 4).

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied