Case Law Details
A.G. Industries Vs Union of India And 6 Others (Allahabad High Court)
GST: Hon’ble Allahabad High Court stayed a show cause notice issued on the basis of omitted Rule 96(10) and grants interim relief in an IGST refund recovery dispute
The Petitioner is a manufacturer exporter. It filed refund of IGST on exports. It was sanctioned. Rule 96(10) came to be omitted from 08.10.2024. Yet, relying on the said omitted Rule, a show cause notice dated 13.02.2026 was issued proposing recovery of IGST. Such show cause notice was challenged in writ petition.
The Hon’ble Allahabad High Court stays the show cause notice. It notes that show cause notice has been issued based on omitted Rule. It notes that similar challenge to the Rule is pending before the said High Court. Directs Revenue to file a reply.
Argued by Adv. Bharat Raichandani i/b UBR Legal.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Bharat Rai Chandani (through V.C.) along with Shri Ankit Kumar, learned counsel for the petitioner, Ms. Ayushi Gautam, holding brief of Shri Vivek Kumar Singh, learned counsel for the respondent no. 1, Shri Dhananjay Awasthi, learned Standing counsel for the revenue and Shri Arvind Mishra, learned Standing counsel for the State.
2. Submission is notwithstanding the challenge to the validity of Rule 96(10) of the CGST, Rules, 2017 pending consideration in Writ Tax No. 1534 of 2024 and Writ Tax No. 412 of 2025, before this Court, the said Rule was omitted w.e.f. 08.10.2024. Therefore, the show cause notice issued on 13.02.2026 is wholly without jurisdiction.
3. Matter requires consideration.
4. Connect and list along with Writ Tax No. 1534 of 2024.
5. Learned counsel for the respondent prays for and is granted four weeks time to file counter affidavit. Rejoinder affidavit, if any, may be filed within two weeks, thereafter.
6. Till the next date of listing, the operation and effect of the impugned notice 13.02.2026, shall remain stayed.
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