GST on Notice Pay  —-- The petitioner challenged order in appeal to the extent it found that the petitioner is liable to pay tax on notice pay received from the former employees of the petitioner. The appellate authority upheld the orders of the original authority. The counsel for the petitioner relied CBIC Circular No.178/10/2022-GST dated 3.8.2022. The court observed that the Circular was issued only after the issuance of order of the first appellate authority is no reason to hold that the petitioner is not entitled to the benefits of the Circular. Since the Circular only clarifies the existing law. In the light of the law laid down in Suchitra Components Ltd, the provisions of a Circular will have to be deemed to apply retrospectively. The contention raised by the counsel for the respondent Department that the petitioner has an effective alternative remedy before the GST Appellate Tribunal does not appeal to this Court for the simple reason that the GST Appellate Tribunal is yet to be constituted.

Held that:- The Hon’ble High Court quashed the orders rejecting the application of the petitioner for a refund of GST paid on notice pay. The applications filed by the petitioner for refund shall stand restored to the file of the 1st respondent, who shall reconsider the matter, having regard to the findings contained in this judgment.