GST Update

Desk of CA. Praveen Sharma – 837 Series (CAPS)

BOMBAY HIGH COURT IN THE CASE OF Globe Mobility Private Limited

The petitioner challenged the appellate order dated 24 February 2025, passed by the First Appellate Authority. The next statutory remedy lies before the GST Appellate Tribunal, which is yet to be constituted.

Counsel for the petitioner, Mr. Raichandani, argued that in the absence of a functioning Tribunal, there is no alternate or effective remedy. He also questioned the constitutional validity of Section 16(2)(c) of the CGST/MGST Act, stating that it violates Articles 14, 19(1)(g), and 21 of the Constitution.

The petitioner further claimed that neither the adjudicating authority nor the appellate authority recorded findings on the key issues raised, thereby justifying direct invocation of the High Court’s jurisdiction under Article 226.

The State’s counsel, Ms. Vyas, referred to the Trade Circular dated 13 August 2024, which offers interim protection against recovery proceedings until the Tribunal becomes operational. She submitted that the petitioner can file the Annexure-I form to avail this protection, and the limitation for appeal will start from the date of the Tribunal’s constitution.

She further highlighted that the Gujarat, Kerala, and Patna High Courts have already upheld the validity of Section 16(2)(c), and no contrary judgment exists. Hence, the constitutional challenge was seen as an attempt to bypass the rule of alternate remedy.

The Court held that the Trade Circular sufficiently safeguards the petitioner’s interests. As the petition was filed within the prescribed time, the petitioner may file Annexure-I within four weeks from the date of this order to claim the benefits under the circular. Once the Tribunal is constituted, the petitioner may file an appeal and, if necessary, raise the constitutional challenge at that stage.

All merits-related contentions are left open for adjudication by the Appellate Tribunal. The writ petition was disposed of with these liberties and without any order as to costs.

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