Case Details: Abis Exports India Pvt. Ltd. vs. State of Chhattisgarh (2026) 42 Centax 188 (Chhattisgarh)
Judiciary and Counsel Details
- Rakesh Mohan Pandey, J.
- S/Shri Rajiv Shrivastava, Sr. Adv. & Kaif Ali Rizvi, Adv., for the Petitioner.
- Ms Anuradha Jain, Dy. G.A., for the Respondent.
Facts of the Case
The petitioner industry was established under the State Agriculture and Food Processing Industrial Policy, 2012, under which subsidy and refund of Value Added Tax (VAT) and Central Sales Tax (CST) were assured as incentives. After the implementation of GST, the said relaxations were not extended to the petitioner. Earlier writ proceedings had resulted in a direction for a decision on pending representations submitted by the petitioner. Thereafter, the Secretary of Commerce and Industry rejected the representations. The petitioner questioned the rejection on the ground that the saving clause continued pre-GST exemption notifications in the absence of any withdrawal or rescission of such notifications. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the proviso to the saving clause under Section 174 of the CGST Act and Chhattisgarh GST Act mandates continuation of the incentive-based tax exemption granted through the notification unless such notification is withdrawn or rescinded. It was observed that no document was produced by the State showing withdrawal of the exemption notifications prior to the appointed day. The Court further held that the authority failed to apply the proviso to the saving clause and rejected the claim without considering the controlling legal position governing continuation of incentives under the pre-GST regime. Accordingly, the rejection order was held to be unsustainable, quashed, and the matter was remitted for reconsideration in light of the saving clause and binding legal position.
List of Cases Cited
Hero Motocorp Ltd. v. Union of India — 2022 (66) G.S.T.L. 129 (S.C.) — Followed [Paras 6, 7, 8]
