Telangana High Court Grants Interim Relief to NRSC in GST Dispute
In a significant development, the Telangana High Court has granted interim relief to the National Remote Sensing Centre (NRSC) in a pending GST liability case. The court has directed tax authorities to refrain from taking any coercive action against NRSC, which functions under the Department of Space, Government of India.
The division bench, comprising Chief Justice Aparesh Kumar Singh and Justice P Sam Koshy, has instructed the NRSC to deposit 10% of the assessed tax liability as a condition for relief. NRSC, headquartered in Hyderabad, plays a pivotal role in the acquisition and processing of satellite remote sensing data, serving a critical function in India’s space and scientific infrastructure.
The institution had approached the High Court to challenge a GST order issued on January 22 by the tax department. In its writ petition, NRSC termed the tax order as arbitrary, illegal, and a violation of its constitutional rights. The agency requested the court to quash the tax demand and suspend its implementation while the case is under judicial scrutiny.
During the proceedings, representatives from all concerned parties, including the Central Government and the Central Board of Indirect Taxes and Customs (CBIC), agreed to resolve the dispute in line with a previous High Court ruling on a similar issue.
Based on this consensus, the High Court allowed NRSC to file a second appeal before the appropriate GST Appellate Tribunal within three months of its constitution. Until the appeal is adjudicated by the tribunal, the court ordered that no recovery or enforcement measures be initiated against the agency.
This order brings substantial relief to NRSC and sets a noteworthy precedent for other government institutions facing GST disputes. The judgment reinforces the importance of judicial intervention in ensuring fairness and due process in tax-related matters.