Section 16 of the CGST Act, 2017— Input Tax Credit —– The petitioner challenged the validity of Section 16(2)(aa), Section 16(2)(c) and Rule 36(4) with a further prayer to quash and set aside the order dated 27.12.2021. The counsel for the petitioner submitted that the respondent No.2 vide order dated 27.12.2021 has passed an order for return of ITC claimed by the petitioner. The counsel for the respondent No.2 admitted that the impugned order dated 27.12.2021 is passed ignoring the fact that the GST on the supplied items has already been paid by the suppliers.

Held that:- The Hon’ble High Court quashed the order dated 27.12.2021 and directed the respondent No.2 to pass a fresh order after providing opportunity of hearing to the petitioner.