SHARE

| Oct-13-2021

Transfer Petition challenging Constitutional Validity of Section 16(2)(c) dismissed by Supreme Court

In Union of India v. M/s Cummins Technologies India Pvt Ltd and Ors etc. [Transfer Petitions(Civil) Nos.1481­-1482/2021 dated September 20, 2021] , the current transfer petitions have been filed to transfer two writs - M/s. SPL Infrastructure Private Limited v. Assistant Commissioner of State Tax, Narasannapeta and Ors [Writ Petition No.7767 /2020] pending before the Hon’ble Andhra Pradesh High Court and M/s Cummins Technologies v. Union of India [Writ Petition No. 9443/ 2020] pending before the Hon’ble Madhya Pradesh High Court, which challenges the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (“CGST Act”).

The Hon'ble Supreme Court observed that there have been 34 other writ petitions filed challenging the same provision as in the current petition, the matters of which are pending across nine High Courts in the country. Section 16(2)(c) of the CGST Act 2017 provides that a registered dealer would be eligible for claiming Input Tax Credit (“ITC”) on the goods purchased on the condition that the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of such supply.

The Union of India (“Respondent”) contended that since the particular provision has already been challenged and the proceedings are pending across the Country, along with ramifications of huge amounts payable under the CGST Act are involved, it should be appropriate for the Hon’ble Supreme Court to hear the matter.

The Hon’ble Supreme Court noted that it is not inclined to entertain the petition on the ground that various High Courts are already seized of the matters. And specifically in M/s Cummins Technologies v. Union of India [Writ Petition No. 9443/ 2020] pending before the Hon’ble Madhya Pradesh High Court, counter affidavit has already been filed.

Therefore, the Hon’ble Supreme Court dismissed the transfer petitions and requested the Madhya Pradesh High Court to dispose of the Writ Petition (supra) pending before it within a period of two months.

(Author can be reached at info@a2ztaxcorp.com)

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

Similar reads

Rejection of bid in absence of GST registration cannot be termed as arbitrary as tender was for taxable supplies

In M/S. ASR Hospitals (India) Pvt. Ltd. v. State of Andhra Pradesh and Ors. [W.P. No. 17415 of 2021 dated September 22, 2021], Andhra Pradesh Medical Services Infrastructure Development Corporation

Oct-13-2021

Read More

Orissa HC revokes GST Registration Cancellation on failure of Dept. to prove wrongful availment of ITC on fake invoices

In M/S. Bright Star Plastic Industries v. Additional Commissioner of Sales Tax [W.P. (C) No. 15265 of 2021 dated October 04, 2021], M/S. Bright Star Plastic Industries ("the Petitioner") has filed

Oct-13-2021

Read More

Order of Preventive detention not sustainable on grounds of stale and illusory

In Naveen Kasera alias Naveen Agarwal v. Union of India Secretary Ministry of Finance W.P.(CRL) 630/2021 dated September 30, 2021] the current writ petition has been filed by Naveen Kasera alias

Oct-13-2021

Read More

Mere dispatch of Order does not imply the service and receipt of Order

In M/S. Ghadshyam Enterprises v. Commissioner Central Goods & Services Tax [Service Tax Appeal No. 50783 of 2020 (SM) dated August 18, 2021], M/S. Ghadshyam Enterprises ("the Appellant") filed

Oct-13-2021

Read More

Whether amount forfeited on account of breach of sale of land agreement taxable under GST

In M/s. Fastrack Deal Comm Pvt. Ltd. [ADVANCE RULING NO. GUJ/GAAR/R/58/2020 dated July 30, 2020] M/s. Fastrack Deal Comm Pvt. Ltd. (“the Applicant”) after entering into a sale agreement to sell a fact

Oct-13-2021

Read More