New Delhi, Sept. 7 -- The Supreme Court on Monday dismissed the Centre's challenge to a Bombay High Court order quashing a Rs.363 crore GST demand against Vodafone Idea in relation to its erstwhile entity, Vodafone Mobile Services Ltd (VMSL).

The court upheld the view that tax proceedings cannot be continued against a company that no longer exists after a merger.

A bench of Justices J.B. Pardiwala and K. Vinod Chandran, rejecting the tax department's plea, said the issue was already covered by the Supreme Court's 2019 judgment in the Maruti Suzuki case, which dealt with tax proceedings against a company after its merger.

The dispute concerns GST proceedings against VMSL arising from the sale of its telecom tower business as a going con...