Case Law Details
Jain Brothers Vs Union of India (Chhattisgarh High Court)
In the case of Jain Brothers Vs Union of India (W.P.(T) No.191/2022), Chhattisgarh High Court recently held that Section 16(4) is constitutionally valid and does not violate Article 300A.
Fact of the case – The petitioner, a proprietorship firm involved in the trade of oils and related products, consistently procures goods and utilizes specific services for its business needs. The petitioner for the financial year 2018-19 filed return under Section 39 of the CGST Act in Form GSTR-3B for the month of March, 2019 on 13-11-2019. the petitioner was served with a demand letter alleging that Input Tax Credit (ITC), as specified above, is availed in contravention of Section 16(4) of the CGST Act along with interest under Section 50 of the CGST Act. Rejecting the grounds raised by the petitioner stating that Section 16(4) provides for condition of availing ITC and accordingly demanded the payment of wrongly availed ITC along with appropriate interest.
Court conclusion:- the provision contained in Section 16(4) of the CGST Act is violative of neither Article 14 of the Constitution nor Articles 19(1)(g) & 300A of the Constitution. The petitioner has failed to make out a case to question the constitutional validity of Section 16(4) of the CGST Act as it is a constitutionally valid piece of legislation.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
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