The Bombay High Court has stayed a Rs 170 crore GST recovery initiated against Gateway Terminals India, a joint venture between JNPT and Container Corporation of India, providing interim relief to the port terminal operator and putting the tax department’s demand on hold until further orders.
The court passed the stay while hearing a petition filed by Gateway Terminals challenging the legality of the GST demand, which includes tax, interest and penalties. The company argued that the recovery proceedings were premature and that the demand itself was unsustainable under the GST law, warranting judicial intervention.
Gateway Terminals contended that the tax authorities had moved to recover the amount without adequately addressing its objections and submissions. The company also raised concerns over procedural lapses and the interpretation of GST provisions applied to its operations. The High Court, after considering the submissions, granted interim protection and directed that no coercive recovery action be taken against the company.
The stay offers temporary relief to Gateway Terminals, which operates container terminals at major ports and is part of a global port operations network. A recovery of this scale could have had a significant financial impact on the company’s cash flows and ongoing operations, particularly in a sector already facing cost pressures and regulatory scrutiny.
For the tax authorities, the order underscores the courts’ willingness to intervene in GST disputes where questions are raised over due process or the basis of large tax demands. The case is expected to be heard further, with the court examining the merits of the GST claim and the company’s challenge in detail.