Sikkim HC to Decide on Rule 31A of the CGST Rules; Next Hearing on December 05, 2023

Last updated: 25 October 2023

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Quick Summary

The Sikkim High Court is reviewing a challenge to Rule 31A of the Central Goods and Services Tax Rules, 2017. Delta Corp Limited and another party argue that Rule 31A is unconstitutional and have also contested a Show Cause Notice, a rate notification, and related circulars. The petitioners are seeking clarity on valuing supplies, particularly after Rule 31A's introduction. The next court hearing is scheduled for December 5, 2023.

Court :
Sikkim High Court

Brief :
The Hon'ble Sikkim High Court heard the case Delta Corp Limited and Anr. v. Union of India and Ors. [W.P.(C) No. 41 of 2023] on October 20, 2023.

Citation :
W.P.(C) No. 41 of 2023

The Hon'ble Sikkim High Court heard the case Delta Corp Limited and Anr. v. Union of India and Ors. [W.P.(C) No. 41 of 2023] on October 20, 2023.

The counsel for the Delta Corp Limited and Anr. ("Petitioners") have challenged, inter alia, Rule 31A of the Central Goods and Services Tax Rules, 2017 ("the CGST Rules") as ultra vires to the Constitution of India. The Petitioners have also challenged the Show Cause Notice ("SCN") dated September 27, 2023, issued against the Petitioners, Rate Notification dated June 28, 2017, Circular dated January 04, 2018, and FAQ clarification dated September 06, 2017.

The counsel for the Petitioners further submitted that, the Petitioners have been corresponding with the concerned authorities as they were facing difficulty in determining the value of the supply made, particularly after the insertion of Rule 31A of the CGST Rules. However, the Petitioners were constrained to approach the Court challenging vires of Rule 31A of the CGST Rules. The Counsel for the Petitioners also submitted that, the need to respond to SCN would not arise if the Petitioners are successful in their challenge to Rule 31A of the CGST Rules. The Deputy Solicitor General of India submitted that, at this stage only SCN has been issued and further steps would be taken only after the receipt of reply from the Petitioners.

The matter has been listed for filing of reply and further hearing on December 05, 2023.

FAQ :

The Sikkim High Court is hearing a case challenging the constitutional validity of Rule 31A of the Central Goods and Services Tax Rules, 2017.

The case involves Delta Corp Limited and another party (Petitioners) versus the Union of India and others.

The Petitioners have also challenged a Show Cause Notice dated September 27, 2023, a Rate Notification dated June 28, 2017, a Circular dated January 04, 2018, and an FAQ clarification dated September 06, 2017.

The petitioners are challenging Rule 31A because they are facing difficulties in determining the value of supplies made, especially after its insertion into the CGST Rules.

The next hearing for the case is scheduled for December 05, 2023, for the filing of a reply and further proceedings.