The Aurangabad bench of Bombay High Court has stayed Rs. 71.23 Crore GST demand based on 4 years consolidated notice.

The bench of Justice S. G. Mehare and Justice Shailesh P. Brahme has observed that there is a prima facie material to stay the demand as issuing consolidated notice is impermissible and it goes to the hook of the jurisdiction. Taxing double for the same thing, is prima facie unjustifiable and since the product for which the GST sought is industry base, it is not taxable. 

The petitioner/assessee was served with consolidated notice by respondent No.3 for paying GST from the year 2017 – 2021. After show-cause, the petitioner had explained the said notice. However, his explanation was not accepted and the impugned order was passed, holding the respondents liable to pay Rs.71,23,02,689 with fine of equal amount.

The department had raised an objection that since efficacious alternate remedy is available under Section 107 of the Central Goods and Service Tax Act, 2017, the Court may not exercise the writ jurisdiction under Article 227 of the Constitution of India.

The petitioner contended that issuing consolidated notice is impermissible and it goes to the hook of the jurisdiction. Taxing double for the same thing, is prima facie unjustifiable and since the product for which the GST sought is industry base, it is not taxable. 

The court said that since prima facie it was satisfied with the arguments advanced by the counsel for the petitioner, there shall be interim stay to the order till the next date.

Case Details

Case Title: Ms Grainotch Industries Ltd Versus The Union Of India 

Case No.: Writ Petition No. 1262 Of 2025

Date: 30/01/2025

Counsel For Petitioner: Alok Sharma

Counsel For Respondent: Ajay G. Talhar

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