M/S. D P JAIN AND CO. INFRASTRUCTURE PVT. LTD., NAGPUR THR. GENERAL MANAGER (ACCOUNTS), SANJAY BOLE vs UNION OF INDIA, THR. THE SECRETARY, MINISTRY OF FINANCE DEPT. OF REVENUE, NEW DELHI AND ORS. — WP/2087/2025

Case under Constitution of India Section 226, 227. Next hearing: 06th May 2026.

Next hearing 06-May-2026

CNR: HCBM040116532025

Filing Number

WP/8525/2025

Filing Date

08-Apr-2025

Registration No

WP/2087/2025

Registration Date

16-Apr-2025

Judge

Hon'ble Justice Urmila Joshi Phalke , Hon'ble Justice Nivedita Prakash Mehta

Coram

Hon'ble Justice Urmila Joshi Phalke , Hon'ble Justice Nivedita Prakash Mehta

Bench Type

Division

Judicial Branch

Civil

Last updated 28-May-2026

Acts & Sections

Constitution of India Section 226, 227
Central Goods and Services Tax Act,2017

Petitioner(s)

  1. 1.M/S. D P JAIN AND CO. INFRASTRUCTURE PVT. LTD., NAGPUR THR. GENERAL MANAGER (ACCOUNTS), SANJAY BOLE

    Adv. ROHAN K JOSHI,RAGHAV A. BHANDAKKAR,RAGHAV A. BHANDAKKAR, ,RAGHAV A. BHANDAKKAR

Respondent(s)

  1. 1.UNION OF INDIA, THR. THE SECRETARY, MINISTRY OF FINANCE DEPT. OF REVENUE, NEW DELHI AND ORS.

    Adv. ,KUNAL KRANTI NALAMWAR,(FOR R 2 AND

  2. 2.,KUNAL KRANTI NALAMWAR 1123

  3. 3.SENIOR INTELLIGENCE OFFICER/ASSISTANT COMMISSIONER DIRECTORATE GENERAL OF GST INTELLIGENCE

  4. 4.JOINT DIRECTOR/ADDITIONAL DIRECTOR DIRECTORATE GENERAL OF GST INTELLIGENCE, COIMBATORE

  5. 5.ADDITIONAL/JOINT COMMISSIONER OF CGST AND CENTRAL EXCISE NAGPUR-I COMMISSIONERATE

  6. 6.ASSISTANT COMMISSIONER OF STATE TAX (INVESTIGATION) MUM-INV-D-013, MUMBAI

  7. 7.STATE OF MAHA., THR. ADDITIONAL CHIEF SECRETARY (FINANCE) SECRETARIES CABIN, MUMBAI

Case History

  1. 06-May-2026

    Next hearingPending

  2. 06-May-2026

    Hon'ble Justice Urmila Joshi Phalke,hon'ble Justice Nivedita Prakash MehtaView PDF

    Summary: WP/2087/2025 - M/S. D P JAIN AND CO. INFRASTRUCTURE PVT. LTD. vs. UNION OF INDIA Outcome Petition PARTLY ALLOWED The High Court of Bombay (Nagpur Bench) quashed the show cause notice and GST investigation proceedings against the petitioner company for providing corporate guarantees without consideration. Key Findings What Was Challenged: - Circular No. 204/16/2023 (27.10.2023) declaring corporate guarantees as taxable services - Rule 28(2) of CGST Rules, 2017 (amended 26.10.2023) imposing 1% annual valuation on guarantees - Show cause notice dated 28.01.2025 demanding GST on corporate guarantees Court's Decision: 1. Corporate guarantees provided without consideration are NOT taxable under GST 2. The petitioner explicitly declared in guarantee deeds that no commission/fee was received 3. The activity lacks the essential requirement of "consideration" for taxability 4. Rule 28(2) amendment was NOT declared ultravires (rejected on this ground) Legal Reasoning: - Relied on Supreme Court judgment in *Commissioner of CGST vs. Edelweiss Financial Services Ltd.* (2023), holding that corporate guarantees to group companies without consideration are non-taxable services - For taxability under GST Act, both a "provider" AND "flow of consideration" must exist - Corporate guarantees are contingent contracts enforceable only on default—not commercial services Relief Granted: - ✅ Show cause notice (02/2025-GST) quashed - ✅ GST Intelligence summons (20.07.2023) quashed - ❌ Challenge to Rule 28(2) validity rejected This case analysis is maintained by casestatus.in based on publicly available court records.

  3. 24-Apr-2026

    Hon'ble Justice Urmila Joshi Phalke,hon'ble Justice Nivedita Prakash MehtaView PDF

  4. 24-Apr-2026

    For Admission-Tax Matters

    Hon'ble Justice Urmila Joshi Phalke , Hon'ble Justice Nivedita Prakash Mehta

  5. 17-Apr-2026

    Hon'ble Justice Urmila Joshi Phalke,hon'ble Justice Nivedita Prakash MehtaView PDF

  6. 17-Apr-2026

    For Admission-Tax Matters

    Hon'ble Shri Justice Anil L. Pansare , Hon'ble Justice Nivedita Prakash Mehta

  7. 27-Mar-2026

    Hon'ble Shri Justice Anil L. Pansare,hon'ble Justice Nivedita Prakash MehtaView PDF

  8. 27-Mar-2026

    For Admission-Tax Matters

    Hon'ble Shri Justice Anil L. Pansare , Hon'ble Justice Nivedita Prakash Mehta

  9. 06-Mar-2026

    Hon'ble Shri Justice Anil L. Pansare,hon'ble Justice Nivedita Prakash MehtaView PDF

  10. 06-Mar-2026

    For Admission-Tax Matters

    Hon'ble Shri Justice Anil L. Pansare , Hon'ble Justice Nivedita Prakash Mehta

  11. 20-Feb-2026

    Hon'ble Shri Justice Anil L. Pansare,hon'ble Justice Nivedita Prakash MehtaView PDF

  12. 20-Feb-2026

    —

    Hon'ble Shri Justice Anil L. Pansare , Hon'ble Justice Nivedita Prakash Mehta

  13. 30-Jan-2026

    Hon'ble Shri Justice Anil L. Pansare,hon'ble Justice Nivedita Prakash MehtaView PDF

  14. 09-Jun-2025

    For Admission - Circulated Matters (Civil Side Matters)

    Hon'ble Shri Justice Avinash G. Gharote , Hon'ble Shri Justice Abhay J. Mantri

  15. 02-May-2025

    First hearing

    Initial hearing scheduled

  16. 17-Apr-2025

    Hon'ble Shri Justice Avinash G. Gharote,hon'ble Shri Justice Abhay J. MantriView PDF

  17. 08-Apr-2025

    Case filed

    Registration No. WP/2087/2025

casestatus.in Summary

Summary: WP/2087/2025 - M/S. D P JAIN AND CO. INFRASTRUCTURE PVT. LTD. vs. UNION OF INDIA Outcome Petition PARTLY ALLOWED The High Court of Bombay (Nagpur Bench) quashed the show cause notice and GST investigation proceedings against the petitioner company for providing corporate guarantees without consideration. Key Findings What Was Challenged: - Circular No. 204/16/2023 (27.10.2023) declaring corporate guarantees as taxable services - Rule 28(2) of CGST Rules, 2017 (amended 26.10.2023) imposing 1% annual valuation on guarantees - Show cause notice dated 28.01.2025 demanding GST on corporate guarantees Court's Decision: 1. Corporate guarantees provided without consideration are NOT taxable under GST 2. The petitioner explicitly declared in guarantee deeds that no commission/fee was received 3. The activity lacks the essential requirement of "consideration" for taxability 4. Rule 28(2) amendment was NOT declared ultravires (rejected on this ground) Legal Reasoning: - Relied on Supreme Court judgment in *Commissioner of CGST vs. Edelweiss Financial Services Ltd.* (2023), holding that corporate guarantees to group companies without consideration are non-taxable services - For taxability under GST Act, both a "provider" AND "flow of consideration" must exist - Corporate guarantees are contingent contracts enforceable only on default—not commercial services Relief Granted: - ✅ Show cause notice (02/2025-GST) quashed - ✅ GST Intelligence summons (20.07.2023) quashed - ❌ Challenge to Rule 28(2) validity rejected This case analysis is maintained by casestatus.in based on publicly available court records.

Explore other courts

District Courts Supreme Court
Search Another Case