L & T IHI Consortium Vs Union of India (Bombay High Court)
Bombay High Court held that when the petitioner satisfied the requirements of Section 31(3)(d) of the CGST Act denial of input tax credit to the petitioner is arbitrary and illegal and contrary to the provisions of Section 16 of the CGST / MGST Act.
Facts- The petitioner a consortium of two entities was awarded a contract by the Mumbai Metropolitan Development Authority (MMRDA) a project of public importance, namely the “Mumbai Trans Harbour Link Project”, which involved construction of the longest bridge of 22 kms on the ocean connecting South Mumbai and Nhava-Sheva in Navi Mumbai. It is under such contract disputes have arisen on the application of the provisions of the Central Goods and Services Tax Act, 2017 as also the corresponding provisions of the Maharashtra Goods and Services Tax Act, 2017inter alia in regard to the petitioner’s claim in regard to the input tax credit being not granted to the petitioner qua the advance amounts received by the petitioner from the MMRDA as per the terms of the contract and remitted to its constituent L&T as also denial of the refund of the tax paid.
In such context inter alia on the premise that receipt of advances under the contract would not attract levy of GST, in the present proceedings instituted under Article 226 of the Constitution of India, the petitioner assails the constitutional validity of the provisions of Sections 7, 12, 13 and 16 of the CGST Act as also the corresponding provisions of the MGST Act.
