IDFC Bank Bombay High Court Quashes GST Proceedings Against Amalgamated Non-Existent Entity

The Bombay High Court quashed GST adjudication proceedings initiated against a non-existent amalgamating entity after holding that proceedings against an entity which had ceased to exist pursuant to an approved scheme of amalgamation are void ab initio. 

The Court rejected the Department’s reliance on Section 87 of the CGST Act and reaffirmed that amalgamation results in the extinguishment of the transferor entity in the eyes of law. 

The ruling extensively relied upon the Supreme Court judgment in Maruti Suzuki India Ltd. and earlier Bombay High Court decisions including Vodafone Idea Ltd.