News
GE India Gets Stay on Rs.335 Crore SCN in challenge to Constitutionality of 70:30 Deeming Fiction
21 Sep 2024
- DMD Advocates
- Matter Reporting
The Karnataka High Court has stayed an INR 335 crore Show Cause Notice (SCN) issued to GE India (Petitioner) in challenge to the constitutional validity of the 70:30 deemed valuation mechanism prescribed under Notification No. 24/2018-Central Tax (Rate), dated December 12, 2018. The notification mandates a 70:30 ratio deemed fiction for the supply of goods and services by adding an Explanation to Serial No. 234 of Notification No. 1/2017-Central Tax (Rate), dated June 28, 2017.
The Petitioner has challenged Notification No. 24/2018, along with the corresponding notification issued by the Karnataka Government, as ultra vires Section 15 of the CGST Act and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India.
GE India, engaged in the supply of windmills, is facing an SCN with an aggregate demand of INR 335 crore across multiple states.
The matter is before Justice S.R. Krishna Kumar.
Advocates Tushar Jarwal, Rahul Sateeja, and Vikrant A. Maheshwari are appearing for the Petitioner.
