Indian tax authorities have raised demands for higher tax from at least 17 automotive component manufacturers over tax rates for parts used exclusively by the auto industry. The Directorate General of Goods and Services Tax Intelligence (DGGI) sent notices citing a Supreme Court judgment. The court ruled in favour of Westinghouse Saxby Farmer, leading to doubts over GST liabilities for the auto industry owing to disputes with the CBIC board.
The Supreme Court judgment in the case of Westinghouse is per incuriam as it has neither appreciated the relevant Section Note nor considered or differentiated from its earlier decisions.