Rewinder Techno Electricals Vs Union of India (Jharkhand High Court)
In the case of Rewinder Techno Electricals Vs Union of India, the Jharkhand High Court addressed a writ petition challenging the constitutionality of Section 16(4) of the Central Goods and Services Tax (CGST) Act, 2017, which imposes a time limit for availing Input Tax Credit (ITC). The petitioner argued that this provision violated constitutional rights and the basic structure of the CGST Act. Additionally, the petitioner contested the amendment under Rule 61(5) of the CGST Rules, which validated GSTR-3B as a return with retrospective effect, arguing it infringed on vested rights and was unconstitutional. The petition also sought to quash the orders related to the reversal of ITC for the financial year 2018-19 and associated penalties. The Jharkhand High Court noted that the GST Council had addressed these issues in its 53rd meeting, and thus, the petition was disposed of based on these recommendations. The court granted the petitioner the liberty to pursue any remaining matters before the appropriate forum.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
Heard the learned counsel for the parties.
2. The petitioner in this writ application is seeking to issue a direction and declare section 16 (4) of the Central Goods and Services Act, 2017 as ultra vires, in as much as it seeks to impose a time limit for the availment of Input Tax Credit being violative of Article 14, Article 19(1) (g) and Article 300 A of the Constitution of India and also being violative of the basic structure of the Central Goods and Services Tax Act, 2017 and further seeks a direction to declare the amendment carried under Rule 61 (5) of the Central Goods and Services Rules, 2017 inserted vide Notification 49/2019-CT dated 09.10.2019 (Annexure-11), as ultra vires under which GSTR-3B has been declared to be a valid return under Section 39 of the Central Goods and Services Act, 2017 with retrospective effect from 1.07.2017 as being wholly violative of Article 14, Article 19 (1) (g) and Article 300 A of the Constitution of India as it has an effect of interfering with the vested right of the petitioner to avail Input Tax Credit and further to issue direction a writ of certiorari for quashing /setting aside the Order-in-Appeal no. 32/CGST/RAN/2024 dated 26.02.2024 (Annexure-9), passed by Additional Commissioner (Appeals), Central Goods & Services Tax, Ranchi wherein, he has been pleased to confirm the ex-parte Order-in-Original dated 23.03.2023 (Annexure-7) and further to issue a direction including Writ of Certiorari for quashing /setting aside the ex-parte Order-in-Original dated 23.03.2023 along with corrigendum dated 25.04.2023 and DRC-07 dated 25.04.2023 passed under section 73 of the CGST Act, 2017 (Annexure-7, 7/1 and 7/2 respectively) and all other consequential notices issued by the Respondent no. 4 to the petitioner wherein the petitioner has been directed to reverse the amount so availed as Input Tax Credit for discharging its output tax liability for the Financial Year 2018-19 along with interest u/s 50 (3) and Penalty u/s 122 (2) (a) of the CGST Act, 2017, total amounting to Rs.6,54,214/-, as being arbitrary, unreasonable and against the scheme of the Central Goods and Service Tax Act, 2017 read with the prescribed rules under Central Goods and Services Tax Rules, 2017.
