The Petitioner filed the writ petition (W.P. (C) 8751/2020) to challenge Rule 133(3)(b) of the Central Goods and Services Tax Rules, 2017 Haryana Goods and Services Tax Rules, 2017 (hereinafter referred as “CGST/HGST Rules”) for being ultra vires the Section 171 of the Central Goods and Services Tax Act, 2017/Haryana Goods and Services Tax Act, 2017 (hereinafter referred as “CGST/HGST Act”) on following grounds:
- That Section 171 does not provide for imposition of interest as a consequence for contravention of the Section 171 of the CGST/HGST Act. Therefore, Rule 133(3)(b) violates the settled law that Rules being a subordinate legislation must confirm to provisions of main statute and must also come within scope of rule-making power.
- That Rule 133(3)(b) is also in violation of settled principles of law that in case of general delegation of power without providing any guidelines (as provided under Section 164 of the CGST Act), the same cannot be exercised so as to bring into existence substantive rights, or obligations or disabilities not contemplated by the provisions of Act itself.
The Petitioner has also challenged the impugned order of the NAA to the extent it imposed interest at the rate of 18% PA payable from the date from which excess amount was collected from the buyers till the date of payment within 3 months from the date of the order.
The Hon’ble Delhi High Court was pleased to issue notices, and also in view of the the orders passed by this Court in Phillips India Limited Vs. Union of India & Ors. [W.P.(C) No.3737/2020] as well as M/s Samsonite South Asia Pvt. Ltd. Vs. Union of India & Ors. [W.P.(C) No.4131/2020] and M/s Patanjali Ayurved Ltd. Vs. Union of India & Ors. [W.P.(C) No.4375/2020], the interest amount directed to be paid by the petitioner as well as the penalty proceedings are stayed till further orders by the Hon’ble Delhi high Court.
The matter has been argued by Adv. Puneet Agrawal (Partner at ALA Legal Advocates & Solicitors) & Adv. Purvi Sinha (Manager at ALA Legal Advocates & Solicitors)
Read the order at: Order_Signature