2025(03)LCX0291

SOUTH INDIAN BANK LIMITED

Versus

STATE OF MAHARASHTRA

WRIT PETITION (L) NO. 24430 OF 2024 decided on 20-03-2025

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION (L) NO. 24430 OF 2024

The South Indian Bank Ltd.                     .. Petitioner

            Versus

State of Maharashtra & Anr.                 .. Respondents

Adv.G. Shivdass, Senior Advocate (through V.C.) a/w Rishab J., Aansh Desai i/b. Pythagoras Legal for the Applicant/Petitioner.

Ms. Jyoti Chavan, Addl.G.P. a/w Mr. Rakesh Pathak, AGP for the Respondent No.1.

Dr. Leena S. Panpatil, Deputy Commissioner of State Tax, Mazgaon, Mumbai is present.

CORAM    : B. P. COLABAWALLA &
                FIRDOSH P. POONIWALLA, JJ.

DATE    : MARCH 20, 2025

P. C.

1. Mentioned. Not on board. With the consent of the parties taken on board for ad-interim reliefs.

2. The learned Advocate appearing for the Petitioner, submitted that by an order passed today in Interim Application (L) No. 8387 of 2025, this Court has allowed the amendments to the Writ Petition, under which, (i) Notification No. 56/2023-Central Tax dated 28th December, 2023 issued by Respondent No. 3; and (ii) Notification No. 56 of 2023 dated 16th January, 2024 issued by Respondent No. 1 have been challenged. He submitted that the Petition as originally filed also impugned the order in original dated 29th April, 2024 passed by Respondent No. 2 on the strength of these very notifications.

3. The learned Advocate appearing for the Petitioner, submitted that in several other Writ Petitions pending in this Court, the aforesaid Notifications have been challenged and this Court has issued Rule in those writ petitions and also granted interim relief. In this regard, the learned Advocate appearing for the Petitioner, brought to our attention the orders passed by this court in Writ Petition No. 5146 of 2024 [dated 26th February, 2025] and Writ Petition No. 2616 of 2025 [dated 3rd March, 2025]. The learned Advocate therefore submitted that Rule be issued even in this Writ Petition and interim relief be granted staying any recovery pursuant to the impugned order dated 29th April, 2024.

4. We find considerable force in the argument canvassed on behalf of the learned Advocate appearing for the Petitioner. We find that in Writ Petition No. 5146 of 2024 as well as Writ Petition No. 2616 of 2025, this Court has issued Rule and granted interim relief to the Petitioners in both these Writ Petitions on the prima facie ground these Notifications could not have been issued without the recommendation of the GST Council. Considering these facts, we are of the view that in the present case also similar reliefs ought to be granted to the Petitioner. In these circumstances, we issue Rule.

5. The learned Counsel appearing for Respondent Nos. 1 and 2 waives service. Notice of Rule be issued to the remaining Respondents.

6. We find that a strong prima facie case is made out for granting interim relief to the Petitioner. In these circumstances, there will be interim relief in terms of prayer clause (c) which reads thus:-

“that pending the hearing and final disposal of this Petition, that this Hon’ble Court be pleased to:

i. stay the operation of the Impugned Order No. DCLTU-645/LTU-2/GST AUDIT/ 2018-19/24-25/B-32 dated 29.04.2024 passed by the Respondent No. 2 (Exhibit”A” hereto);

ii restrain the Respondents themselves, their officers, subordinates, servants and agents to refrain from giving effect to the Impugned Order No. DC-LTU-645/LTU-2/GST AUDIT/2018-19/24-25/B-32 dated 29.04.2024 passed by the Respondent No. 2 (Exhibit “A” hereto).”

7. Tag the above Writ Petition along with Writ Petition No. 5146 of 2024 and Writ Petition No. 2556 of 2025.

8. We make note of the fact that the Petitioner has already paid 20% of the tax demanded under protest. That will be continued to remain as a deposit till the outcome of the above Writ Petition or until further orders.

9. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.