ICICI Bank Limited Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court has granted interim protection to a bank in a writ petition challenging a GST show cause notice demanding approximately ₹216 crore on charges levied for non-maintenance of minimum average balance in bank accounts. The petition assails a show cause notice dated 19 September 2025 issued by the Principal Commissioner of CGST & CX, Mumbai East, under Article 226 of the Constitution. The Court noted that the issue raised is identical to matters already pending before it, including earlier petitions filed by the same bank and other banks, where interim protection had been granted.
The core issue concerns whether GST can be levied by imputing a taxable supply merely because banks levy charges when customers fail to maintain the prescribed minimum average balance, while also providing facilities such as cheque books when such balance is maintained. The Revenue contends that the non-maintenance charges indicate that facilities provided to customers maintaining minimum balance are supplied for consideration and are therefore taxable.
Relying on earlier coordinate bench orders, the Court issued notice to the Department and permitted adjudication of the show cause notice to continue. However, it directed that even if final orders are passed pursuant to the notice, they shall not be implemented until further consideration by the Court. The matter has been listed for a subsequent date for detailed hearing. The interim relief was granted by the Delhi High Court, maintaining consistency with orders passed in similar pending matters.
