The case of the petitioner is that having paid CGST on the purchases made from a registered dealer, the petitioner thereafter has no control over the seller to ensure that such tax is deposited with the Government revenue as is statutorily is his obligation. Denying to the petitioner input tax credit on such purchases on which the petitioner has already paid tax on the ground that the selling dealer did not deposit the tax with the Government revenue would amount to double taxation. The issues require consideration. Notice issued accordingly.
Section 16 of the CGST Act — Input Tax Credit –-- The petitioner challenged challenged the vires of Section 16(2)(c) of the Act, 2017 as being violative of Articles 14, 19(1)(g) and 300A of the Constitution of India. The petitioner counsel submitted that this provision has been challenged by different dealers before several High Courts in the country where such challenges are pending after notice or issuance of rule. He submitted that according to the department with respect to certain purchases made by the petitioner from another registered dealer after paying full taxes the selling dealer has not deposited the tax with the Government and on account of which the petitioner’s input tax credit account has been put under attachment w.e.f. 21.05.2020. The court observed that this issue requires consideration.
Held that:- The Hon’ble High Court issued notice be returnable on 23.08.2021.
The case of the petitioner is that having paid CGST on the purchases made from a registered dealer, the petitioner thereafter has no control over the seller to ensure that such tax is deposited with the Government revenue as is statutorily is his obligation. Denying to the petitioner input tax credit on such purchases on which the petitioner has already paid tax on the ground that the selling dealer did not deposit the tax with the Government revenue would amount to double taxation. The issues require consideration. Notice issued accordingly.
Section 16 of the CGST Act — Input Tax Credit –-- The petitioner challenged challenged the vires of Section 16(2)(c) of the Act, 2017 as being violative of Articles 14, 19(1)(g) and 300A of the Constitution of India. The petitioner counsel submitted that this provision has been challenged by different dealers before several High Courts in the country where such challenges are pending after notice or issuance of rule. He submitted that according to the department with respect to certain purchases made by the petitioner from another registered dealer after paying full taxes the selling dealer has not deposited the tax with the Government and on account of which the petitioner’s input tax credit account has been put under attachment w.e.f. 21.05.2020. The court observed that this issue requires consideration.
Held that:- The Hon’ble High Court issued notice be returnable on 23.08.2021.