No vested power exist with Tax Research Unit (TRU) to issue circular under the GST law

Last updated: 06 December 2023

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Association of Technical Textiles Manufacturers and Processors &Anr. V. Union of India & ors. [W.P.(C) 5933/2019 dated November 16, 2023] held that, the respondents could not draw attention to any provision of the Central Goods and Services Tax, 2017 ("the CGST Act"), in terms of which the Tax Research Unit ("TRU") could be said to have been clothed with the authority or jurisdiction to render a clarification, with respect to the classification of goods and articles. That power clearly appears to stand conferred upon the Board exclusively. We are thus of the considered opinion that no authority vested in the TRU to issue the clarification impugned before us. Thus, in the absence of a conferral of any power upon the TRU, or it being recognized as being statutorily enabled to issue any clarification or directive under Section 168 of the CGST Act, Circular No. 80/54/2018-GST dated December 31, 2018, is liable to be quashed and set aside on this ground alone and thus, the writ petition shall stand allowed.

Citation :
W.P.(C) 5933/2019 dated November 16, 2023