MERCEDES-BENZ INDIA PVT. LTD. & ANR. v. UNION OF INDIA & ORS. – BOMBAY HIGH COURT
High Court, Bombay
B.P Colabawalla, Justice & Firdosh P. Pooniwalla, Justice
MERCEDES-BENZ INDIA PVT. LTD. & ANR.
v.
UNION OF INDIA & ORS.
WRIT PETITION No. 5208 of 2025 dated 29.04.2025
Law : GST
Act Name : Central Goods & Services Tax Act, 2017
Notification/Circular : Notification No. 01/2017-Compensation Cess (Rate) dated 28.06.2017 & Notification No. 05/2017-Compensation Cess (Rate) dated 11.09.2017
Decision : In favour of assessee
GST on compensation cess – Interpretation of ground clearance for compensation cess under GST- Show Cause Notice alleging short payment of cess – Dispute on whether ground clearance under Sr. No. 52B of Cess Notification to be measured in laden or unladen condition – Notification No. 3/2023–CC (Rate) inserted explanation that ground clearance to be unladen – GST Council and CBIC circular dated 14.02.2025 clarified amendment is prospective – Petitioner paid 20% cess treating clearance as laden – Department demanded 22% assuming unladen – Impugned order applied Explanation retrospectively – Held: Writ petition allowed – Order quashed – Penalty set aside – Clarificatory Notification held prospective in nature as per CBIC Circular – For disputed period ground clearance to be measured in laden condition – Petitioner correctly paid 20% Compensation Cess .
Represented By:
Counsel for the Petitioner: Prasad Paranjape with Kumar Harshvardhan & Dhruvi Shah i/b. Lumiere Law Partners, Advocates
Continue Reading...
This is only a preview of the article. The complete article contains detailed analysis, examples, notifications, circulars, case laws, interpretations and practical guidance available to premium members.
This is only a preview of the article. The complete article contains detailed analysis, examples, notifications, circulars, case laws, interpretations and practical guidance available to premium members.
🔒 Premium Content
Subscribe to access complete articles, notifications, circulars, case laws, downloads, videos and premium resources.
Become Premium Member