Oriental Insurance Company Limited Vs Additional Commissioner CGST Delhi North & Anr. (Delhi High Court)
In the case Oriental Insurance Company Limited vs Additional Commissioner, CGST Delhi North & Anr., the Delhi High Court heard the matter through hybrid mode. The petitioner, Oriental Insurance Company Limited, filed a writ petition under Article 226 of the Constitution of India challenging three actions: (i) the Order-in-Appeal No. 262/Commr./Central-Tax/Appeal-I/Delhi/2024 dated 11 July 2024 passed by the Commissioner (Appeals-I), CGST, Delhi; (ii) the Order-in-Original No. 58/ADC/D.N./Manish Kumar Jha/2023 dated 29 December 2023 issued by the Additional Commissioner, CGST Delhi North; and (iii) the Show Cause Notice [FORM GST DRC-01] bearing Reference No. 50/GST/2023-24 dated 27 September 2023 issued by the Additional Commissioner, CGST Delhi North.
The key issue raised before the Court was whether reinsurance services availed by the petitioner between 1 July 2017 and 24 January 2018 were liable for Goods and Services Tax (GST). The Court had previously, on 18 July 2025, directed learned Senior Standing Counsel (SSC) Mr. Ojha to obtain instructions in this matter.
During the hearing, Mr. Ojha submitted that the impugned orders were passed before the issuance of CBIC Circular No. 228/22/2024-GST dated 15 July 2024 and therefore the benefit of that circular might not be available to the petitioner. The relevant portion of the circular was quoted, stating that representations had been received to exempt or regularize GST liability for the period from 1 July 2017 to 24 January 2018 on reinsurance of specified general and life insurance schemes that were otherwise exempt under Sl. Nos. 35 and 36 of Notification No. 12/2017-CT(R) dated 28 June 2017. By the inclusion of Entry 36A effective from 25 January 2018, reinsurance of such exempted insurance schemes was also exempted. The GST Council, in its 53rd meeting held on 22 June 2024, recommended regularization of GST liability for reinsurance of such exempt insurance schemes for the past period, from 1 July 2017 to 24 January 2018, on an “as is where is” basis. Accordingly, the circular formalized this regularization.
