Interim stay order issued against show cause notice under Section 74 of the CGST Act, 2017, pending final hearing.
In a significant development, the Bombay High Court has granted interim relief to Himesh Foods Pvt. Ltd. by staying the impugned adjudication order issued under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017, and the State GST Act. The judgment, delivered by a division bench comprising Justices G.S. Kulkarni and Aarti Sathe, follows a similar precedent set by a co-ordinate bench in a related case involving Hindustan Coca Cola Beverages Pvt. Ltd.
The case pertains to a writ petition filed by Himesh Foods challenging a show cause notice dated August 3, 2024, which was adjudicated on January 4, 2025. The petitioner argued that the authorities had improperly classified their products, resulting in an 18% tax rate application, which they contested. The petitioner’s counsel, Mr. Abhishek Rastogi, referenced a prior decision by the court granting interim relief in a similar matter, urging the bench to adopt a consistent approach.
Respondent counsel, Mr. Jitendra Mishra, acknowledged the pendency of similar proceedings before the court, which influenced the bench’s decision to grant interim relief. Consequently, the court has stayed the adjudication order until the petition is finally disposed of. The matter is scheduled for a final hearing on February 26, 2026, to be listed alongside other companion cases involving comparable issues.
Bottom Line:
Goods and Services Tax (GST) - Interim relief granted in the nature of a stay of impugned order adjudicating show cause notice under Section 74 of CGST Act, 2017 and State GST Act - Matter to be listed for final hearing along with companion matters involving similar issues.
Statutory provision(s): Section 74 of the CGST Act, 2017, Section 74 of the State GST Act
Himesh Foods Pvt. Ltd. v. Union of India, (Bombay)(DB) : Law Finder Doc id # 2843451
