Gujarat HC Quashes GST Order After Omission of Rule 89(4B) Without Saving Clause

Alstom Transport India Limited Vs Union of India & Ors. (Gujarat High Court)

The Gujarat High Court allowed the writ petition filed by Alstom Transport India Limited challenging a show cause notice and the subsequent Order-in-Original No. 55/VDR-II/JC-NKS/ADJ/Alstom/GST/2024-25 dated 29.04.2025 concerning proceedings based on Rule 89(4B) of the CGST Rules, 2017. The petitioner sought, among other reliefs, quashing of the impugned show cause notice and order, contending that Rule 89(4B) had been omitted through Notification No.20/2024-Central Tax dated 08.10.2024 without any saving clause, and that proceedings based on the omitted provision should not continue. The petitioner also challenged Rule 89(4B) as being silent on the methodology/computation for calculating refund and alleged that it was ultra vires Section 54 of the CGST Act, 2017 and violative of Articles 14 and 19(1)(g) of the Constitution of India.

During pendency of the writ petition, the Order-in-Original dated 29.04.2025 was passed and was also challenged. The parties submitted that the issue was no longer res integra in view of the Gujarat High Court’s judgment in M/s. JJ Plastalloy Private Limited Vs. Union of India & Ors., 2025 (12) TMI 311 – Gujarat High Court, dated 20.11.2025, followed by the judgment dated 28.11.2025 in Special Civil Application No.12321 of 2023 and allied matters.