GST Exemption Allowed Despite Brand Image After Disclaimer | HC

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GST brand exemption disclaimer

Case Details: Narasus Saarathy Enterprises (P.) Ltd. vs. Additional Commissioner of GST & Central Excise [2026] 185 taxmann.com 321 (Madras)

Judiciary and Counsel Details

  • C. Saravanan, J.
  • Ms Aparna Nandakumar for the Petitioner.
  • Sai Srujan Tayi, Sr. Standing Counsel for the Respondent.

Facts of the Case

The petitioner was engaged in the supply of maida, sooji, etc., was registered under GST. It supplied certain goods in unit containers without registered brand names, claiming exemption under Serial Nos. 73 and 74 of Notification No. 2/2017-Central Tax (Rate), dated 28-06-2017, while branded goods were taxed at applicable rates. It was contended that though packaging carried a generic farmer image and corporate name, an affidavit was filed disclaiming any actionable claim or enforceable right over the brand, which the Department acknowledged. It was further submitted that regular returns were filed and there was no suppression of facts, as the exemption claim was duly disclosed. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the invocation of the extended period under Section 74 of the CGST Act, read with the Tamil Nadu GST Act, was not sustainable as the essential ingredients of fraud, wilful misstatement, or suppression of facts were not established. It was observed that the petitioner had already filed an affidavit disclaiming any actionable claim or enforceable right over the alleged brand name, thereby placing the jurisdictional officer under CGST on notice regarding the exemption claimed under Serial Nos. 73 and 74 of Notification No. 2/2017-Central Tax (Rate), dated 28-06-2017. The Court further noted that regular returns were filed and there was no concealment of material facts from the Department. Accordingly, it was held that only the normal limitation period under Section 73 was applicable, rendering the demand under Section 74 unsustainable.

List of Cases Reviewed

List of Cases Referred to

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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