Huda Urban Estate And Town And Country Planning Employees Welfare Organization Vs Union of India And Others (Punjab and Haryana High Court)
The HUDA Urban Estate and Town and Country Planning Employees Welfare Organization (HUETCPEWO) have filed Civil Writ Petition No. 8065-2024 contesting the validity of Section 7(1)(aa) of the GST Act. This provision alters the definition of ‘person’ under Section 2(84) of the GST Act and eliminates the concept of mutuality retrospectively from 2017. The Punjab and Haryana High Court, Chandigarh, has taken cognizance of the petitioner’s arguments and issued notice to the respondents. Additionally, the court has temporarily halted the effect and operation of the show cause notice.
The petitioner has raised objections to Section 7(1)(aa) of the Goods and Services Tax Act, introduced via notification dated 21.12.2021 under the Finance Act, 2021. This provision amends the definition of ‘person’ in Section 2(84) of the GST Act. While Section 2(84) originally encompassed associations of persons or bodies of individuals, incorporated or not, within or outside India, Section 7(1)(aa) clarifies that, regardless of any other law or judicial pronouncements, a person and its members or constituents are to be treated as separate entities. Consequently, transactions among them are to be regarded as exchanges between distinct persons.
