The Bombay High Court has granted interim relief to Gateway Terminals India by staying a ₹170 crore GST recovery initiated by tax authorities, putting the demand on hold until further orders.
The stay was issued while hearing a petition filed by Gateway Terminals, a joint venture between Jawaharlal Nehru Port Authority (JNPA) and Container Corporation of India (CONCOR). The company has challenged the legality of the GST demand, which includes tax, interest, and penalties, contending that the recovery proceedings were premature and legally unsustainable under GST provisions.
In its petition, Gateway Terminals argued that tax authorities moved ahead with recovery action without adequately addressing its objections and submissions. The company also cited procedural lapses and disputed the interpretation of GST rules applied to its operations.
After considering the submissions, the High Court directed that no coercive recovery measures be taken against the company until the matter is further heard.
The interim stay offers significant relief to Gateway Terminals, which operates container terminals at major ports and forms part of a global port operations network. A recovery of this magnitude could have impacted the company’s financial position and operational cash flows, especially at a time when the port and logistics sector continues to face cost pressures and regulatory scrutiny.
For the tax department, the order highlights the judiciary’s readiness to scrutinize large GST demands where due process and statutory interpretation are questioned. The matter will now proceed for detailed examination on merits in subsequent hearings.