High Court of Gujarat
Naroda Enviro Projects Ltd. v. Union of India
R/SPECIAL CIVIL APPLICATION NO. 17756 OF 2023
The ruling in brief
Where petitioner-entity registered under section 12AA of income tax act, 1961 carried out pollution control and treatment of industrial waste, such activity is preservation of environment and falls under clause 2(r)(iv) of Chapter 99, thus services attracted Nil rate of GST as per Notification 12/2017 and levy under Notification 11/2017 was not applicable.
Where petitioners, having relied on charitable exemption under section 12AA of Income tax act, 1961, did not pay GST for specified period but later obtained registration and began paying tax, invocation of section 74 on grounds of mis- declaration or wilful suppression was not justified as all facts were known, there was no mala fide intent or deliberate evasion, and show cause notice was quashed
Provisions considered
Section 11, read with Section 9 of Central Goods and Services Tax Act, 2017/Gujarat Goods and Services Tax Act, 2017 - Section 12AA of Income-tax Act, 1961; Section 74 of Central Goods and Services Tax Act, 2017/Gujarat Goods and Services Tax Act, 2017 - Section 12AA of Income-tax Act, 1961
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