Sri Sai Vishwas Polymershaving Office Thru. Vs U.O.I. Thru. (Allahabad High Court)
Allahabad High Court, in the case of Sri Sai Vishwas Polymers vs. U.O.I., has issued a stay on an order dated January 30, 2025, primarily on the grounds that the rule under which the order was passed, Rule 96(10), had been omitted from the Central Goods and Services Tax (CGST) Act, 2017, effective October 8, 2024. The Court observed that, prima facie, no order could have been validly issued under a rule that no longer existed, especially since the omission lacked any saving provision to continue ongoing proceedings initiated before its removal.
The Court noted that while proceedings to declare Rule 96(10) ultra vires were underway in the Kerala High Court, and the rule was omitted before such a declaration, its omission still meant it could not be acted upon post-October 8, 2024. This stance aligns with a recent decision by the Uttarakhand High Court on April 30, 2025, which quashed another order related to the same petitioner on similar grounds. Consequently, the Allahabad High Court granted a stay on the impugned order in this instance. The court has directed the exchange of pleadings between the parties within six weeks and has mandated the petitioner to submit an Indemnity Bond to the opposite party number 5. This bond will serve as an undertaking to cover any losses incurred due to the non-payment of the amount stipulated in the stayed order, should the petition ultimately fail.
