Karnataka HC dismisses Petition to declare Section 16(4) of CGST/SGST Act as Unconstitutional

Prabhayya Basayya Dandavatimath Vs Commissioner of Central Goods And Service Tax And Central Excise (Karnataka High Court)

In a recent judgment, the Karnataka High Court dismissed a writ petition that sought a declaration of Section 16(4) of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Act 2017 as being ultra vires the Constitution. The petitioner was, however, granted the liberty to challenge the order of the respondent in separate proceedings.

This case centered on a request for a constitutional review of Section 16(4) of the CGST/SGST Act 2017. The petitioner sought a declaration that the said section was ultra vires, i.e., beyond the powers of the Constitution. However, the petitioner’s counsel, during the hearing, requested the court to dismiss the writ petition without pressing it further. The court complied with the request, granting the petitioner the liberty to challenge the respondent’s order in separate proceedings.

The court left all contentions open, indicating that the question about the constitutionality of Section 16(4) of the CGST/SGST Act 2017 could be raised in future litigation.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

1. Learned counsel for the petitioner submits that this writ petition may be dismissed as not pressed with liberty to the petitioner to challenge the order dated 01.05.2023 passed by the 2^nd respondent in a separate proceedings. He has filed a memo to the said effect.

2. The same is taken on record.

3. Writ petition is dismissed as not pressed with liberty as prayed for.

4. All contentions are kept open.