Authority: Calcutta High Court, Constitutional Writ Jurisdiction Appellate Side
Order Date: 15 September 2026
Case Overview
- Petitioners: M/s. Glen Industries Private Limited & Anr.
- Respondents: The Deputy Director, Directorate General of GST Intelligence, Kolkata Zonal Unit & Ors., represented by the CGST Authorities and the Union of India.
- Core Issue: Respondents alleged violation of Rule 96(10) of the CGST/WBGST Rules, 2017. The rule was omitted effective 8 October 2024 by Notification No. 20/2024‑Central Tax without any saving clause.
- Legal Precedent: Supreme Court in M/s Goodluck India Ltd. & Anr. v. Union of India & Ors. (SLP (C) No. 24550 of 2025) held that an omitted provision without a saving clause ceases to exist and cannot be the basis of proceedings.
- Administrative Action: CBIC issued Office Memorandum dated 24 August 2026 directing field formations not to initiate or pursue proceedings based on the omitted Rule 96(10).
- GST Authorities filed an affidavit in opposition, asserting compliance with the law as it stood at the relevant time.
Final Outcome
- The Court, taking judicial notice of the Supreme Court judgment and the CBIC memorandum, quashed the show‑cause notice dated 09 January 2024 (issued under Section 74 of the CGST Act, 2017) covering the period July 2017 to March 2021, and the consequential orders dated 30 January 2025, as they were founded solely on the omitted Rule 96(10).
- Writ petition WPA 3254 of 2025 is disposed of; the petition is dismissed.
- An urgent photostat certified copy of the order is to be supplied to the parties upon request.
Topics: GST Litigation, Taxation Law, Supreme Court Precedent