GST Demand Quashed for Applying Prospective SEZ Rules to Earlier Tax Period

Mk Travels Vs Deputy Commissioner of Commercial Taxes (Karnataka High Court) SThe Karnataka High Court examined a writ petition challenging multiple proceedings initiated under the Karnataka Goods and Services Tax Act, 2017 for the tax period July 2017 to March 2018. The petitioner sought quashing of an order passed under Section 73 of the KGST Act, its summary issued under Rule 142(5) of the KGST Rules, and a recovery notice issued under Section 78 of the KGST Act. The dispute arose from an audit observation where the Deputy Commissioner confirmed tax and interest demand on the ground that th...