WRIT PETITION 10171/2025

IN THE HIGH COURT OF DELHI AT NEW DELHIDate of Decision 26[th]September, 2025Date of Decision 26[th]September, 2025+W.P.(C) 10171/2025 & CM APPL. 42261/2025

M/S THE ORIENTAL INSURANCECOMPANY LIMITEDCOMPANY LIMITED

.....PetitionerThrough:Mr.YogendraAldak,Mr.KunalKapoor and Mr. Yatharth Tripathi,Advs. (M:[REDACTED])Kapoor and Mr. Yatharth Tripathi,Advs. (M:[REDACTED])

versus

ADDITIONAL COMMISSIONER CGSTDELHI NORTH & ANR.DELHI NORTH & ANR.

.....Respondents

Through:Mr. Anurag Ojha, SSC with Mr. DipakRaj & Mr. Shashank Kumar, Advs.Raj & Mr. Shashank Kumar, Advs.

CORAM:JUSTICE PRATHIBA M. SINGHJUSTICE SHAIL JAIN

Prathiba M. Singh, J. (Oral)

1.This hearing has been done through hybrid mode.

2.The present petition has been filed by the Petitioner under Article 226 ofthe Constitution of India, inter alia, challenging the following:the Constitution of India, inter alia, challenging the following:

(i)Order-in-Appeal No. 262/Commr./Central-Tax/Appeal-I/ Delhi/2024dated 11[th]July 2024 passed by the ld. Commissioner (Appeals-i),CGST, Delhi;dated 11[th]July 2024 passed by the ld. Commissioner (Appeals-i),CGST, Delhi;

(ii) Order-in-Original No. 58/ADC/D.N./Manish Kumar Jha/2023 dated29th December, 2023 passed by the Respondent No. 1 and29th December, 2023 passed by the Respondent No. 1 and

(iii) The Show Cause Notice [FORM GST DRC-01] bearing ReferenceNo. 50/GST/2023-24 dated 27th September, 2023 issued by theRespondent No.2.No. 50/GST/2023-24 dated 27th September, 2023 issued by theRespondent No.2.

3.The question that has been raised in this case is as to whether re-

insurance services which are availed of by the Petitioner- M/s OrientalInsurance Company Limited would be liable for GST for the period between01[st]July 2017 to 24[th]January 2018.

4.Vide order dated 18[th]July 2025, Mr. Ojha, ld. SSC was directed to seekinstructions in this matter.

5.Today, Mr. Ojha, ld. SSC for the Respondent has sought instructions andsubmits that the Order-in-Original and the Order-in-Appeal in this case werepassed prior to the issuance of the Circular No. 228/22/2024-GST on 15[th]July2024 (hereinafter, ‘circular’) and therefore, the benefit of the said circular maynot be extendible to the Petitioner. The relevant portion of the said circularreads as under:

“6. GST liability on the reinsurance of specified generaland life insurance schemes.

6.1 Representations have been received to either exemptor regularize the GST liability, for the period from01.07.2017 to 24.01.2018, on reinsurance of specifiedgeneral insurance and life insurance schemes, whichare exempt from GST.

6.2 Certain specified general insurance and lifeinsurance schemes are exempt from GST under SI. Nos.35 and 36 of notification No. 12/2017-CT(R) dated28.06.2017. Vide entry at SI. No. 36A of the saidnotification, reinsurance of the aforesaid exemptedinsurance schemes has also been exempted w.e.f.25.01.2018.

6.3 GST Council in its 53rd meeting held on 22nd June,2024 has recommended to regularize the GST liabilityon such reinsurance of exempt general insurance andlife insurance schemes for the past period, i.e. from01.07.2017 to 24.01.2018, on 'as is where is' basis.

6.4 Thus, as recommended by the GST Council, GSTliability on the services by way of reinsurance of theinsurance schemes specified in SI. Nos. 35 and 36 of

notification No. 12/2017-CT(R) dated 28.06.2017 isregularizedfortheperiodfrom01.07.2017to24.01.2018 on 'as is where is' basis.”

6.However, ld. Counsel for the Petitioner has taken the Court through adecision of Co-ordinate Bench of this Court in W. P. (C) 4136/2024 titled‘AXA France Vie-India v. Union of India & Ors.’, wherein this very issuerelating to another insurance company has been considered by this Court and ithas been observed as under:

“7. It appears that on 18 January 2018, the GST Councilintroduced new entry in Notification No.12/2017dated 28 June 2017 exempting reinsurance serviceswhen offered in relation to government insuranceschemes. It becomes pertinent to note that the saidexemption notification at Serial No.40 had made

8. The said original notification saw an amendmentwhich was promulgated on 25 January 2018 and interms of which Entry 36A came to be introduced and thesaid amending entry read as follows: -

9. doubt appears to have arisen in light of theamended Serial No.36A while speaking of services byway of reinsurance specifying it to be relatable to Serial

Nos. 35 or 36 in the original notification. There wasthus, perhaps an inadvertent error in failing to take noteof Serial No.40 which too formed part of the originalnotification dated 28 June 2017.

10. Upon this apparent error coming to light, yetanother amending notification came to be issued on 26July 2018 and clause (k) of which provided as follows:-

“(k) against serial number 36A, in the entry

in column (3), after figures “36”, the wordand figures “or 40” shall be inserted;”

11. Entry 36A thus came to include Serial No.40specifically. The issue which therefore remained forconsideration was whether the aforesaid amendmentswould be liable to be viewed as curative, and thus beingapplicable to the period prior to 27 July 2018, the datefrom which the said notification was stated to beapplicable and whether the same would clarify theposition which would obtain prior thereto.

12. These aspects ultimately fell for deliberation beforethe GST Council in its meeting held on 22 June 2024and in which the recommendations of the FitmentCommittee for regularization of payment of GST onreinsurance services came to be accepted.13. This becomes apparent from reading of Note 5.46and the decision expressly taken by the Council in thatregard and which is reproduced hereinbelow:-

“5.46 Joint Secretary, TRU then presented

the next agenda item relating to request toclarifythatreinsuranceservicesoftheinsurance schemes for which total premium ispaid by the Government (Sl. No. 40 of thenotification No. 12/2017 CTR) are exemptfrom GST for the period 01.07.2017 to26.07.2018. She stated that in the 28th GSTCouncil meeting held on 21.07.2018, it wasdecided to exempt re-insurance of insuranceschemes already exempt under Sl. No. 40 ofNotification No. 12/2017-CTR. The said

exemption was notified w.e.f. 27.07.2018. Theissue was examined by the Fitment Committeeanditrecommendedtoregularizethepayment of GST on reinsurance services oftheinsuranceschemesforwhichtotalpremium is paid by the Government (SI No.40 of Notification No. 12/2017-CT(R) dated28.06.2017) for the period from 01.07.2017 to26.07.2018 on „as is where is‟ basis by way of issuance of Circular.Decision:TheCouncilapprovedtherecommendation of the Fitment Committee toregularize the payment of GST on reinsuranceservices of the insurance schemes for whichtotal premium is paid by the Government (SL.No. 40 of Notification No. 12/2017-CT(R)dated28.06.2017)fortheperiodfrom01.07.2017 to 26.07.2018 on 'as is where is'basis by way of issuance of Circular. ”

14. Pursuant to the said decision taken by the GSTCouncil, clarificatory Circular came to be issued bythe Department of Revenue in the Ministry of Financeon 15 July 2024 and insofar as GST liability onreinsurance is concerned it was clarified as under:-

““6. GST liability on the reinsurance ofspecified general and life insurance schemes.6.1 Representations have been received toeither exempt or regularize the GST liability,for the period from 01.07.2017 to 24.01.2018,on reinsurance of specified general insuranceand life insurance schemes, which are exemptfrom GST. 6.2 Certain specified generalinsurance and life insurance schemes areexempt from GST under Sl. Nos. 35 and 36 ofnotificationNo.12/2017-CT(R)dated28.06.2017. Vide entry at Sl. No. 36A of thesaid notification, reinsurance of the aforesaidexempted insurance schemes has also been

exempted w.e.f. 25.01.2018. 6.3 GST Councilin its 53rd meeting held on 22nd June, 2024has recommended to regularize the GSTliability on such reinsurance of exemptgeneral insurance and life insurance schemesfor the past period, i.e. from 01.07.2017 to24.01.2018, on „as is where is‟ basis.

6.4 Thus, as recommended by the GSTCouncil, GST liability on the services by wayof reinsurance of the insurance schemesspecified in Sl. Nos. 35 and 36 of notificationNo.12/2017-CT(R)dated28.06.2017isregularized for the period from 01.07.2017 to24.01.2018 on „as is where is‟ basis.”

15. The GST Council as well as the Union Government,thus appear to have taken conscious decision toregularize the period between 01 July 2017 and 26 July2018.

16. Undisputedly, the impugned order relates to thatvery period. While it is true that on 20 December 2023,when the impugned order came to be passed, theseclarifications had not been rendered, undisputedly, thesame would not sustain in light of the stand which hasbeen taken by the respondents and is principally noticedhereinabove.”

7.Heard. In the present case, the benefit in respect of re-insurance servicesis being sought for the period between 01[st]July 2017 to 24[th]January 2018. Inrespect of the said period, the Circular No. 228/22/2024-GST dated 15[th]July2024 has extended the benefit. The GST Council, in its 53rd Meeting held on22nd June, 2024, recommended the said clarification, which was thereafterincorporated vide issuance of the said circular. The relevant portion of therecommendation of the GST Council reads as under:

“6. GST liability on reinsurance services of specifiedinsurance schemes covered by Sr. Nos. 35 & 36 of

Signature Not Verified

notification No. 12/2017-CT (Rate) dated 28.06.2017may be regularized on ‘as is where is’ basis for theperiod from 01.07.2017 to 24.01.2018”

8.Since the Order-in-Original dated 29th December, 2023 and the Order-in-Appeal dated 11[th]July 2024 were passed prior to the issuance of the circular,the concerned authorities obviously did not take note of the same. However,the benefit of the circular cannot be denied to the Petitioner. In view thereof,the circular would be squarely applicable in the case of the Petitioner. Thedecision in AXA France Vie-India (Supra) would also be applicable in thepresent case.

9.Accordingly, the Order-in-Original dated 29th December, 2023 and theOrder-in-Appeal dated 11[th]July 2024 are set aside. For the said period, thebenefit of circular dated 15[th]July 2024 is extended to the Petitioner.10.The petition, along with the pending applications, if any, is disposed ofin the aforesaid terms.

PRATHIBA M. SINGHJUDGE

SHAIL JAINJUDGE

SEPTEMBER 26, 2025kk/ck(corrected & released on 4[th]October, 2025)