Case Law Details
Nexus Innovatice Solutions Private Limited Vs Additional Commissioner of Central Taxes (Madras High Court)
In a significant ruling, the Madras High Court has set aside an assessment order dated 28th December 2023, specifically concerning the imposition of Goods and Services Tax (GST) on vouchers, in the case of Nexus Innovative Solutions Private Limited versus Additional Commissioner of Central Taxes.
Nexus Innovative Solutions Private Limited, engaged in managing and implementing reward programs for corporate clients, including the purchase and sale of gift vouchers, received a show cause notice dated 4th September 2023 following an audit report. The petitioner responded to the notice on 4th October 2023 and 30th November 2023, but the subsequent order issued raised concerns.
The petitioner’s counsel argued that the petitioner’s role was that of an intermediary, procuring vouchers from suppliers and selling them to clients, and thus, they should not be subject to GST on vouchers. Referring to relevant sections of the Central Goods and Services Tax Act, the counsel highlighted the lack of reasoned analysis in the order and cited precedents, including a judgment by the Karnataka High Court and a recent judgment by the Madras High Court.
The respondent’s counsel contended that the matter should be examined by the appellate authority rather than the court.
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