GST: Gujarat HC Protects Assessee from Section 74 Action amid Dispute on Input Credit Distribution [Read Order]
The Court issued Returnable Notice and warned Respondents of any Coercive Action until Next Hearing
![GST: Gujarat HC Protects Assessee from Section 74 Action amid Dispute on Input Credit Distribution [Read Order]](https://images.taxscan.in/h-upload/2025/12/02/2109610-gujarat-hc-input-credit-distribution-taxscan.webp "GST: Gujarat HC Protects Assessee from Section 74 Action amid Dispute on Input Credit Distribution [Read Order]")
The High Court of Gujarat has granted interim relief to a container shipping company in a matter concerning the distribution of Input Tax Credit (ITC) across its branches, restraining the authorities from taking coercive action during the pendency of the case. The petition was filed by Orient Overseas Container Line Limited, represented by Dhaval Shah, challenging the...
The High Court of Gujarat has granted interim relief to a container shipping company in a matter concerning the distribution of Input Tax Credit (ITC) across its branches, restraining the authorities from taking coercive action during the pendency of the case.
The petition was filed by Orient Overseas Container Line Limited, represented by Dhaval Shah, challenging the order dated 28.01.2025 passed by the Union of India authorities, including Central Goods and Services Tax (CGST) officers.
Senior Advocate Mihir Joshi appeared alongside Dhaval Shah for the petitioner, while respondents were represented by Deepak N. Khanchandani and Pradip D. Bhate.
Through its Mumbai-based Indian company, the petitioner provides container shipping and logistical services, including the likes of in-line haulage and terminal management. The petitioner, having several branches throughout India, obtained numerous GST registrations and an Input Service Distributor (ISD) registration in Gujarat so as to appropriately distribute ITC to its branches in accordance with GST requirements.
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The matter emerged because, although the petitioner made no allegations of tax evasion, the authorities used Section 74 of the Integrated Goods and Services Tax (IGST) Act, 2017, which generally addresses tax evasion. The petitioner said that the claim was based on a misreading of GST regulations and Circular 199/11/2023-GST dated 17.07.2023. The disagreement only concerned the proper way of distributing ITC among its registered branches.
The Court, comprising Justices Bhargav D. Karia and Justice P.M. Raval, issued notice returnable on 24.07.2025 and directed that no coercive action shall be taken by the respondents until the next hearing. The Court also permitted service of notices through email.
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