Revenue can't be restrained from collecting GST when Adverse Order sustains against ONGC: Madras HC [Read Order]

In a significant ruling in the case of ONGC, the Madras High Court (HC) has held that the revenue can’t be restrained from collecting tax under GST when an adverse order to ONGC sustain.

The petitioner, M/s Oil and Gas Natural Corporation Limited(ONGC) prayed to issue a Writ of mandamus, forbearing the respondents from levying, collecting or recovering Goods and Services Tax on an ongoing basis under the Central Goods and Services Tax Act, 2017 and/or the Tamil Nadu Goods and Services Tax Act, 2017, on the element of royalty paid by the petitioner under the Oilfields (Regulation and Development) Act, 1948 read with the Petroleum and Natural Gas Rules, 1959.

An earlier order of pending petition stands which directed the respondent to hear the petitioner and pass orders on the taxability of royalty paid by the petitioner under the Oilfields (Regulation and Development) Act, 1948 read with the Petroleum and Natural Gas Rules, 1959, under the provisions of the Goods and Services Tax Act, 2017. Under the directions issued, an order has come to be passed on 24.06.2022 holding the issue adverse to the interests of the petitioner.

Dr Justice Anita Sumanth observed that in light of the above-said order the prayer of the petitioner for a mandamus forbearing the respondents from levying, collecting or recovering GST does not arise. The single bench judge closed the petition by granting liberty to the petitioner to challenge the order dated 24.06.2022, by the law.

The Petitioner was represented by Mr Karthik Sundaram and the respondent was represented by Mr A.P.Srinivas, Mr C.Harsha Raj.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.