Case Details: New Gee Enn & Sons vs. Union of India - [2025] 181 taxmann.com 1
Judiciary and Counsel Details
- Sanjeev Kumar & Sanjay Parihar, JJ.
-
S.F. Qadiri, Sr. Adv., Numan Zargar, Ms Snober Sameer & Sikander Hayat Khan, Advs. for the Petitioner.
-
Tahir Majid Shamsi, DSGI, Ms Rehana Qayoom, Adv., Waseem Gul, GA, Mohd Younus Hafiz & Ms Nowhabar Khan, ACs for the Respondent.
Facts of the Case
The petitioners, engaged in cross-LoC barter trade, contended that such transactions were treated as zero-rated under the pre-GST J&K VAT regime and therefore continued to be non-taxable under GST. It was submitted that these barter transactions did not involve currency exchange and were not in the nature of import or export. It was argued that the notices issued were time-barred and invalid as they were composite for multiple years. They also urged that the writ petitions were maintainable and that the jurisdictional officer was not justified in invoking suppression or fraud. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that cross-LoC barter transactions constituted intra-State supplies because both the location of the supplier and the place of supply lay within the territories of the erstwhile State of Jammu &Kashmir, including areas under the de facto control of Pakistan, and were therefore amenable to GST levy under section 8 read with section 7 of the IGST Act. The Court held that the show cause notices were referable to section 74(1) of the CGST Act as their contents indicated prima facie suppression, non-disclosure of outward and inward supplies, non-cooperation during inquiry, and awareness that no exemption notification applied.
List of Cases Referred to
- Whirlpool Corporation v. Registrar of Trade Marks (1998) 8 SCC 1 (para 45)
- Radha Krishan Industries v. State of Himachal Pradesh [2021] 127 taxmann.com 26/48 GSTL 113/86 GST 665 (SC) (para 46).
The post Cross-LoC Barter in J&K Taxable as Intra-State Supply | HC appeared first on Taxmann Blog.
