Court refrains from exercising writ jurisdiction, emphasizes statutory mechanism under CGST Act for determining taxability and exemptions.
In a significant ruling dated July 21, 2026, the Delhi High Court has directed that the taxability of diagnostic services provided by Hemogenomics Private Limited under the Goods and Services Tax (GST) be determined by the Authority for Advance Ruling. The petitioner, Hemogenomics Private Limited, had sought the Court's intervention after receiving a communication from the Government of NCT of Delhi, suggesting that its services were liable to GST at 18%. The petitioner also raised questions about the jurisdiction and legal basis of this communication.
The court, comprising Justices Anil Kshetarpal and Amit Mahajan, highlighted the comprehensive statutory mechanism provided under Chapter XVII of the Central Goods and Services Tax Act, 2017. This mechanism includes a specialized forum for determining issues related to the classification of goods and services, applicability of exemption notifications, and tax liability.
The Court was informed that the Authority for Advance Ruling had been unable to adjudicate on the matter due to a lack of quorum. However, it was assured that the quorum issue would be resolved soon, allowing the Authority to proceed with pending applications. The Court emphasized that the Authority for Advance Ruling is better equipped to handle such technical and factual issues, given its expertise and statutory mandate.
The Court refrained from exercising its writ jurisdiction under Article 226 of the Constitution, noting that the petitioner had already approached the statutory forum for advance ruling. It underscored the importance of allowing the specialized forum to operate without interference, ensuring that the statutory process is respected and followed.
In its order, the Court directed the Authority for Advance Ruling to consider the petitioner's applications independently and expeditiously, without being influenced by previous communications. The Court also noted that any party dissatisfied with the Authority's ruling could pursue further statutory remedies available under the CGST Act.
The decision marks a reaffirmation of the legislative intent to handle GST-related disputes through specialized forums, thereby reducing the burden on the courts and ensuring expert resolution of complex tax issues.
Bottom line:-
GST - Diagnostic services rendered by the petitioner - Questions regarding taxability, classification, applicability of exemption notifications, and liability to pay tax to be determined by the Authority for Advance Ruling as per Chapter XVII of the CGST Act, 2017.
Statutory provision(s):
Sections 95, 96, 97, 98, and 100 of the Goods and Services Tax Act, 2017, Article 226 of the Constitution of India.
