Tecnimont Spa India Project Office Vs State of Punjab And Another (Punjab and Haryana High Court)
Punjab & Haryana HC Defers Decision on GST Section 174(2) Challenge: The Punjab and Haryana High Court recently disposed of a set of writ petitions challenging the constitutional validity of Section 174(2) of the GST Act, 2017. The provision, which also exists in the Kerala and Haryana GST Acts, had previously been upheld by the Kerala High Court. The petitioners contended that the section was unconstitutional, but the court deferred its final decision, citing ongoing proceedings before the Supreme Court in the case of T.S. Belaraman v. The Commercial Tax Officer & Others (C.A. No. 006724/2024).
The Kerala High Court had earlier ruled in favor of the Revenue, holding that Section 174(2) of the GST Act was constitutionally valid and within the legislative competence of the state. Aggrieved by this decision, the assessees challenged it before the Supreme Court, where leave was granted on May 14, 2024. In the interim, the apex court restrained the Revenue from taking coercive steps against the petitioners. Given this development, the Punjab and Haryana High Court observed that any final adjudication on the matter would depend on the Supreme Court’s ruling.
