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

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).