Case Law Details

Case Name : Union of India Vs Cummins Technologies India Pvt Ltd. (Supreme Court of India)
Appeal Number : Transfer Petitions(Civil)  Nos. 1481­-1482/2021
Date of Judgement/Order : 20/09/
Related Assessment Year :

Union of India Vs Cummins Technologies India Pvt Ltd. (Supreme Court)

In Union of India v. M/s Cummins Technologies India Pvt Ltd and Ors etc. [Transfer Petitions(Civil) Nos. 1481­-1482/2021 dated September 20, 2021] , the current transfer petitions have been filed to transfer two writs – M/s. SPL Infrastructure Private Limited v. Assistant Commissioner of State Tax, Narasannapeta and Ors [Writ Petition No.7767 /2020] pending before the Hon’ble Andhra Pradesh High Court and M/s Cummins Technologies v. Union of India [Writ Petition No. 9443/ 2020] pending before the Hon’ble Madhya Pradesh High Court, which challenges the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (CGST Act).

The Hon’ble Supreme Court observed that there have been 34 other writ petitions filed challenging the same provision as in the current petition, the matters of which are pending across nine High Courts in the country. Section 16(2)(c) of the CGST Act 2017 provides that a registered dealer would be eligible for claiming Input Tax Credit (ITC) on the goods purchased on the condition that the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of such supply.

The Union of India (Respondent) contended that since the particular provision has already been challenged and the proceedings are pending across the Country, along with ramifications of huge amounts payable under the CGST Act are involved, it should be appropriate for the Hon’ble Supreme Court to hear the matter.

The Hon’ble Supreme Court noted that it is not inclined to entertain the petition on the ground that various High Courts are already seized of the matters. And specifically in M/s Cummins Technologies v. Union of India [Writ Petition No. 9443/ 2020] pending before the Hon’ble Madhya Pradesh High Court, counter affidavit has already been filed.

Therefore, the Hon’ble Supreme Court dismissed the transfer petitions and requested the Madhya Pradesh High Court to dispose of the Writ Petition (supra) pending before it within a period of two months.

FULL TEXT OF THE JUDGMENT OF SUPREME COURT OF INDIA

These transfer petitions have been filed by the Union of India under Article 139A read with Article 142 of the Constitution of India seeking transfer of two Writ Petitions to this Court, i.e., (i) Writ Petition No. 9443/2020 titled ‘M/s. Cummins Technologies vs Union of India’ pending before the High Court of Madhya Pradesh at Indore and (ii) Writ Petition No.7767 /2020 titled ‘M/s. SPL Infrastructure Private Limited v. Assistant Commissioner of State Tax, Narasannapeta and Ors.’ pending before the High Court of Andhra Prdesh at Amaravati. In both these Writ Petitions, the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 has been challenged.

In addition to the aforementioned two Writ Petitions, we are informed that the constitutional validity of Section 16(2)(c) of the CGST Act has been challenged in 34 other writ petitions, which are stated to be pending across nine High Courts in the country.

According to learned Solicitor General, since the issue has implication on a number of matters pending across the country and also ramifications of huge amounts payable under the said Act, it would be appropriate if this Court hears all the matters.

Top angle view of pen colors, paper holding file and notebook written with text GST on a wooden background

Even though learned Solicitor General insisted for transfer of cases pending before various High Courts to this Court, we are not inclined to entertain these transfer petitions, for the reason that various High Courts are already seized of the matters. In particular, in the matter before the High Court of M.P., Indore Bench, counter affidavit is already stated to have been filed.

In view of the above, we request the High Court of Madhya Pradesh, Indore Bench to dispose of the Writ Petition No. 9443/2020, pending adjudication before it, as early as possible and preferably within a period of two months’ time from the date of communication of this Order.

Parties are at liberty to advance their respective arguments before the High Court of Madhya Pradesh, Indore Bench.

So far as other Writ Petitions, which are pending before various High Courts, it is open for the parties to bring this Order to the notice of the concerned High Courts and seek expeditious disposal of their cases.

The Transfer Petitions are disposed of in the afore­stated terms.

Pending applications, if any, shall also stand disposed of.

*****

(Author can be reached at [email protected])

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