GST DAILY – 503: Revenue is required to examine if tax impact was revenue neutral or resulted in loss of revenue before taking action: HC

THE HON’BLE MADRAS HIGH COURT IN THE CASE OF Union of India V/s Flemingo Duty Free Shop Pvt. Ltd. , decided on 29-4-2025

👉 Issue:-

✔️ Is it justified for Revenue to examine if tax impact was revenue neutral or resulted in loss of revenue before taking any action?

👉 TheHon’ble High Court Judgement:-

✔️ Where petitioner entered into concession agreement with Airport Authority of India for operation of Duty Free Shop at International Airport and paid minimum guarantee/revenue share, revenue Authorities should examine as to whether tax effect was in fact revenue neutral or there was any loss of revenue and thereafter proceed in accordance with law.