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Delhi HC bars GST coercive action against CCI in ₹10.36 cr dispute

Delhi HC bars GST coercive action against CCI in ₹10.36 cr dispute

The Delhi High Court has restrained the Goods and Services Tax (GST) authorities from initiating any coercive action against the Competition Commission of India (CCI) in connection with a ₹10.36-crore tax demand. A division bench of Justice Prathiba M Singh and Justice Rajneesh Kumar Gupta issued the interim relief on 21 May after hearing CCI's plea challenging the demand raised by the Central GST Commissionerate, Delhi South.
The CCI argued that it is a statutory regulatory body under the Competition Act, 2002, and does not engage in any commercial activity that would warrant a GST levy. In support, it cited the High Court's earlier ruling in Central Electricity Regulatory Commission v. DGGI, where the court had held that show cause notices issued under similar circumstances could not be sustained.
Taking note of this precedent, the court directed that no coercive steps be taken against the CCI. The GST department has been asked to file its response within six weeks, with the rejoinder due in four weeks thereafter. The matter has been listed for further proceedings before the Joint Registrar on 29 July, and before the court on 8 September.

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