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M/s Goodluck India Limited v. Union of India

Special Leave Petition (Civil) · 2026 INSC 821Decided 6 Aug 2026
SLP(C) No.24550 of 2025 (and connected matters)
Justice J.B. Pardiwala · Justice K. Vinod Chandran

Background

Rule 96(10) of the CGST Rules, 2017, which restricted certain exporters from claiming refunds of integrated tax if they had availed specified duty-benefit notifications, was omitted with effect from 08.10.2024, without any saving or sunset clause. Several exporters had pending refund claims affected by this rule at the time of its omission, and a High Court ruled that the omission benefited all such pending proceedings. The Union of India challenged this before the Supreme Court, while a couple of assessees separately challenged the validity of the rule itself, an issue the High Court had not addressed.

Decision Breakdown

The Supreme Court dismissed the two SLPs challenging the rule's vires as infructuous, given the outcome on the main issue, and granted leave in the remaining matters. Relying on the Constitution Bench decision in Kolhapur Canesugar Works Ltd. v. Union of India, the Court held that when a rule (as distinct from an Act) is omitted without a saving clause, it is treated in law as if it never existed, and pending proceedings under it cannot survive unless a saving provision was expressly enacted. Since the GST Council's recommendation that the omission apply only "prospectively" was merely advisory and non-binding, and no saving clause had in fact been inserted, the Court upheld the High Court's ruling that the omission of Rule 96(10) benefits all pending refund proceedings, and dismissed the Union of India's appeals.

Lesson Learnt

When a government rule (not a full statute) is omitted without an express clause preserving pending cases, the omission is treated as if the rule never existed, meaning it automatically benefits everyone with a matter still pending at that time, regardless of any non-binding policy recommendation to the contrary.

Official source (sci.gov.in)View Judgment (PDF)

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