Punjab & Haryana High Court Notice To Central Government Over CGST Rules’ Amnesty Scheme

Punjab & Haryana High Court Notice To Central Government Over CGST Rules’ Amnesty Scheme

It will have significant implications for taxpayers, as the measures were taken to reduce litigation

The High Court of Punjab and Haryana has issued notice of motion to the Government of India in a writ petition by Mitsuba India Private Limited challenging the power of Rule 164 of the Central Goods and Services Tax (CGST) Rules, 2017.

The rule prescribes conditions for opting for the Amnesty Scheme under the CGST Act.

The assessee stated that Rule 164 was ultra vires Section 128A. It posed restrictions not contemplated in the Section. The rule was arbitrary and discriminated against persons who had paid tax through Income Tax Returns (ITRs). However, it forced them to pay the tax again to avail the scheme’s benefits.

The challenge has significant implications for taxpayers, as the Amnesty Scheme was introduced to reduce litigation regarding the initial three years of the Goods and Services Tax (GST) regime.

The petitioner was represented by Lakshmikumaran and Sridharan Attorneys.

The team was led by Senior Advocate B.L. Narasimhan. He was assisted by Amrinder Singh, Shreya Khunteta and Samiksha Uniyal (Advocates).