Gujarat HC quashed demand on Amul on Cross-Charge Issues basis Nil Valuation and No Section 74 Foundation

The Gujarat High Court set aside a ₹43.43 crore IGST demand against Gujarat Co-operative Milk Marketing Federation for corporate expenses incurred at its Head Office and allegedly attributable to branches. Applying CBIC circulars on valuation between distinct persons, the Court held that the value of services was to be treated as Nil where invoices had not been issued, in the circumstances of the case. It also found no adequate factual foundation for alleging fraud, wilful misstatement or suppression under Section 74.