The Madras High Court has set aside an order passed by an Additional Commissioner of Central Goods and Services Tax (CGST) on December 22, 2023 demanding ₹96.10 crore from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), because sale of purified water through tanker lorries would attract 18% GST.
Justice Senthilkumar Ramamoorthy disposed of a writ petition filed by CMWSSB challenging the imposition of tax, interest as well as penalty. He remanded the matter to the Additional Commissioner for reconsideration on condition that the Board must remit ₹3 crore within six weeks before reagitating the issue on merits.
The judge directed the Additional Commissioner to provide a reasonable opportunity, including a personal hearing, to the CMWSSB before passing fresh orders, within three months from the date of receipt of ₹3 crore. He permitted the Board to present all relevant documents to substantiate its claim of being eligible for exemption from GST.
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