𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗚𝗦𝗧 𝗮𝗻𝗱 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝗼𝗳 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀 📢 𝗧𝗵𝗲 𝗖𝗼𝘂𝗿𝘁 𝗿𝘂𝗹𝗲𝗱: "Though Rule 5A of the Service Tax Rules 1994 was declared ultra vires, proceedings already initiated under it are saved by Section 174 of the CGST Act."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s T.R. Sawhney Motors Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: The petitioner received a letter on 20 February 2019 initiating proceedings for the verification and audit of records. The petitioner argued that Rule 5A (2), under which the audit was initiated, was struck down as ultra vires in Travelite (India) v. Union of India, and thus, the audit was invalid.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Court held that although Rule 5A was struck down as ultra vires, proceedings already initiated under it are saved by Section 174 of the CGST Act. Despite previous rulings in Travelite and Mega Cabs not being referenced, the court confirmed the continuation of pending proceedings before CGST implementation.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s T.R. Sawhney Motors Pvt. Ltd. vs. Union of India & Anr. 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 29 August 2023 📜 This ruling affirms that, despite the ultra vires status of Rule 5A, proceedings initiated before the CGST implementation are preserved under Section 174 of the CGST Act.