Section 16(2) of the CGST Act, 2017 — Input Tax Credit —-- The petitioner challenged the vires of Clause (c) of Sub-Section (2) of Section 16 of the Act and challenged the order dated 12th May, 2022 passed under Section 73. The Counsel for the Petitioner stated that it is inconceivable that for the default on account of supplier, the Petitioner, who has already suffered tax can be saddled with further levy of tax, interest and penalty.  The Petitioner further prayed for stay of further proceeding and for issuance of direction to the Opposite Parties not to take any coercive action till disposal of the writ petition.

Held that:- The Hon’ble High Court issued notice for 15th November, 2022 and directed the Petitioner to deposit 20% of the tax as determined vide assessment order dated 12th May, 2022, within a period of four weeks. In the event of such deposit, no coercive action shall be taken against the Petitioner till disposal of the writ petition.