Madras High Court Quashes Customs Notice Restricting GST Collection

The Madras High Court quashed a notice issued by the Customs Department restraining Container Freight Stations (CFS) from collecting Goods and Services Tax (GST) on auctioned or uncleared cargo.

Justice N. Anand Venkatesh ruled that the Department had acted ultra vires its authority and that the impugned notice contravened the provisions of the Central Goods and Services Tax Act, 2017.

The respondents contended that the directive unlawfully interfered with their statutory duty to collect GST under the Act, a position the Court upheld.

Concluding that the Customs Department lacked jurisdiction to issue such directions, the Court declared the notice wholly unsustainable in law.

[M/s. National Association of Container Freight Stations v. Joint Commissioner of Customs]