Express Freight Railway Consortium Vs Union of India and ors. (Bombay High Court)
Bombay HC restrains coercive action against Express Freight Railway Consortium over Rs. 16.47 crore GST demand under Section 74
Bombay HC grants interim relief to ‘Express Freight Railway Consortium’ against recovery of GST demand of Rs. 16.47 crore on mobilization advances received in the pre-GST regime; Petitioner challenges Order-in-Original confirming GST demand of Rs. 16,47,03,883/- along with interest and penalty under Section 74 read with Section 122(2)(b) of the CGST Act, 2017; Petitioner submits that the mobilization advances were received in March–April 2017, when the underlying railway construction services were exempt from Service Tax, and therefore GST could not be demanded merely because the advances remained outstanding as on 01.07.2017; Petitioner also raises jurisdictional and natural justice grounds against invocation of Section 74. The Petitioner relied upon the legal position concerning invocation of Section 74, including the recent decisions of the Hon’ble Supreme Court in M/s G.R. Infra Projects Limited, Ratlam v. State of Madhya Pradesh & Ors., Civil Appeal No. 11277 of 2026, decided on 19.08.2026, and M/s Tata Steel Limited v. Union of India & Ors., Civil Appeal arising out of SLP (C) No. 16859 of 2026, decided on 25.08.2026, concerning the requirement of foundational facts for invoking the extended provisions of Section 74. Court, considering the narrow controversy involved, indicates that it is inclined to endeavour to decide the Petition finally at the admission stage; directs Revenue to file reply within two weeks and restrains coercive action for recovery of the tax dues till the next date; matter listed on 13.10.2026.
The matter is before Justice M. S. Karnik and Justice Sandesh D. Patil.
Mr. Bharat Raichandani i/b UBR Legal Advocates appeared for the Petitioner, whereas Mr. Ram Ochani a/w Ms. Megha Badoria appeared for Respondent Nos. 3, 4 and 5.
Cases Discussed
- M/s G.R. Infra Projects Limited, Ratlam v. State of Madhya Pradesh & Ors. — Civil Appeal No. 11277 of 2026, decided on 19.08.2026; relied upon concerning the requirement of foundational facts for invoking the extended provisions of Section 74.
- M/s Tata Steel Limited v. Union of India & Ors. — Civil Appeal arising out of SLP (C) No. 16859 of 2026, decided on 25.08.2026; relied upon concerning the requirement of foundational facts for invoking the extended provisions of Section 74.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Heard the learned Counsel for the Petitioner.
2. Issue notice to the Respondents.
3. Mr. Ochani, learned Counsel appears and waives service of notice on behalf of Respondent Nos. 3, 4 and 5.
4. The parties are put to notice that considering the narrow controversy involved in the Petition, we are inclined to make an endeavour to decide the Petition finally at the admission stage.
5. Reply, if any, be filed within two weeks from today.
6. List the Petition on 13th October, 2026.
7. No steps be taken against the Petitioner to recover the tax dues till the next date.
