Uttarakhand HC Voids State GST Orders After Rule Deletion
By Author | May 12, 2025 | GST Recent News – 2025, Uttarakhand HC
Rule 96(10) No Longer Applicable After Omission
The Uttarakhand High Court has nullified several orders issued by the state GST department. It ruled that no action could continue under Rule 96(10) of the CGST Rules, 2017, after its omission on October 8, 2024. The court highlighted that the government did not include a saving clause, which would have allowed ongoing cases to continue.
Case Background: Sri Sai Vishwas Polymers
The division bench, led by Chief Justice G Narendar and Justice Alok Mahra, heard a petition from M/s Sri Sai Vishwas Polymers. The firm argued that Rule 96(10) violated Section 16 of the IGST Act and Section 54 of the CGST Act. The petitioner challenged the validity of actions taken based on this rule.
The firm manufactures gold bars and jewellery under Chapter 71 of the Central Excise Tariff Act. During an audit, GST officers claimed the firm wrongly availed an IGST refund worth ₹1.05 crore. They issued a show-cause notice and later confirmed the demand.
Argument Over Timing and Legal Validity
The firm pointed out that the show-cause notice relied on Rule 96(10), which had already been deleted by October 8, 2024. Therefore, the rule could not apply anymore. On the other hand, the department argued that the rule was valid at the time of issuing the notice. According to them, the deletion should only affect future cases, not those already in motion.
Court Cites Kerala HC Precedent
The bench referred to a previous Kerala High Court judgment in Sance Laboratories Pvt Ltd vs Union of India. That court had declared Rule 96(10) unconstitutional. Following that decision, the government removed the rule in October 2024. The Uttarakhand bench said it was unnecessary to revisit the rule’s legality.
Final Verdict
The court concluded that because Rule 96(10) was omitted without a saving clause, any action under it must stop immediately from the date of deletion. It allowed the firm’s petition and canceled the state GST department’s order dated February 3, 2025.
