Case Law Details
B D Enterprises Vs Union of India (Jharkhand High Court)
In the case of B D Enterprises Vs Union of India, the Jharkhand High Court addressed a petition challenging the constitutionality of Section 16(4) of the Central Goods and Services Act, 2017, which imposes a time limit for availing Input Tax Credit (ITC). The petitioners argued that this limitation violated their constitutional rights under Articles 14, 19(1)(g), and 300 A. They also contested the validity of Rule 61(5), amended by Notification No. 49 of 2019, and sought to annul a show cause notice issued by the Central Board of Indirect Taxes and Customs. However, the Court noted that the issues raised were already considered by the 53rd GST Council Meeting held on June 22, 2024, which had addressed the concerns related to the petition. Consequently, the High Court disposed of the writ applications, directing that the GST Council’s recommendations be given due consideration. The petitioners were granted the option to pursue further remedies before the appropriate forum if needed.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
Heard the learned counsel for the parties.
2. The petitioners in these writ applications are seeking to issue a direction and declare section 16(4) of the Central Goods and Services Act, 2017 (Annexure-5) as ultra vires in as much as it seeks to impose 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 further seeks a direction to declare the amendment carried under Rule 61 (5) of the Central Goods and Services Act, 2017 inserted vide Clause 4(a) of Notification No. 49 of 2019 dated 9th October, 2019, issued by the Respondent No. 2, Central Board of Indirect Taxes and Customs (Annexure-8), as ultra vires and consequentially seeks to quash the show cause notice issued in Form DRC-01, dated 21.05.2021 (Annexure-4), issued by Respondent No. 3 to the petitioner.
3. At the outset, it has been brought to our notice, that the questions which were involved in the present writ applications has been considered by the G.S.T. Council Meeting and there is a recommendation made by 53rd G.S.T. Council Meeting on 22nd of June, 2024, wherein the G.S.T. Council has taken note of the claim made in the present writ applications. Consequent thereon, the recommendation of the G.S.T. Council has to be given due weightage in accordance with law, as a result of which, these writ applications stand disposed of in view of the recommendations of 53rd G.S.T. Council Meeting and, if any, other matter remaining for consideration, it is open to the petitioners to pursue the remedy in accordance with law before the appropriate Forum. With the aforesaid liberty, these writ applications stands disposed of.
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