Atlanta Infra Assets Limited Vs Union of India and Others (Bombay High Court)
The Bombay High Court heard a writ petition raising a limited but significant issue under the Central Goods and Services Tax Act: whether corporate guarantees furnished by a parent company to secure borrowings of its subsidiaries constitute a “supply” liable to GST. The petitioner had provided corporate guarantees amounting to ₹700 crore for Mora Tollways Limited and ₹170 crore for Atlanta Ropar Tollways Pvt. Ltd., and the issue arose from an Order-in-Original passed by State GST authorities.
At the hearing, counsel for both the petitioner and the revenue fairly agreed that the controversy is not isolated. It was pointed out that an identical issue had already been considered by the same Court in Schloss HMA Pvt. Ltd. v. Union of India and others, and that several similar petitions are presently pending, some at the admission stage and others where pleadings are yet to be completed.
In view of the commonality of issues and the pendency of connected matters, the Court adjourned the proceedings to 16 February 2026. It directed that the present petition be listed along with all companion matters, a consolidated list of which is to be provided by the revenue. The Court also directed that reply affidavits be served on the petitioner’s counsel well in advance and that a list of relevant dates and legal propositions be placed on record.
