MAC Industry Vs Union of India & Anr. (Gujarat High Court)
Summary: Gujarat High Court allowed the writ petition filed by MAC Industry challenging the show cause notice dated 26.03.2025 and consequential order dated 09.06.2025 concerning Rule 96(10) of the Central Goods and Services Tax Rules, 2017. At the outset, the petitioner submitted that the controversy stood concluded by the Supreme Court’s decision in Goodluck India Limited & Anr. Vs Union of India & Ors., and the Revenue was unable to controvert the applicability of that ruling.
The dispute concerned the effect of omission of Rule 96(10) of the CGST Rules through Notification No. 20/2024 with effect from 08.10.2024. The Supreme Court in Goodluck India had considered whether the omission would benefit assessees in pending proceedings relating to refund of integrated tax paid on exports. It held that, in the absence of a saving clause or sunset clause, the omitted provision could not be kept alive for pending proceedings merely because the GST Council’s recommendation contemplated prospective omission. The recommendation was advisory and did not bind the rule-making authority.
The High Court noted that the Supreme Court had observed that Rule 96(10) was omitted because it was causing unnecessary complications without serving the intended benefit. Significantly, in the present case, the show cause notice itself was issued on 26.03.2025, after Rule 96(10) had already been omitted with effect from 08.10.2024. The consequential order was thereafter passed on 09.06.2025.
