Grainotch Industries Ltd Vs Union Of India Through Its Secretary And Others (Bombay High Court)
Bombay High Court granted an interim stay on a GST demand of ₹71.23 crore imposed on Grainotch Industries Ltd. The petitioner challenged the consolidated notice for the period 2017-2021, arguing that it resulted in double taxation and that Extra Neutral Alcohol (ENA) is not taxable under the GST Act. The petitioner cited a Supreme Court judgment and amendments to Section 9 of the GST Act to support their claims. While the respondents argued for an alternate remedy under Section 107 of the GST Act, the court observed that the petitioner’s challenge raised significant jurisdictional and substantive questions that warranted consideration under Article 226 of the Constitution. The court found prima facie merit in the petitioner’s arguments and deemed the consolidated notice and tax demand unjustifiable. The respondents were granted time to counter the petitioner’s claims and explore contrary case laws. Meanwhile, the court issued an interim stay on the impugned order and directed respondents to decide if an affidavit-in-reply was necessary. The matter is now tagged with Writ Petition 13627 of 2024 and is scheduled for further hearing in February 2025.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
