HC accepts Plea against Denial of ITC to recipient for fault of supplier

Federation of Indian Small Scale Battery Associations (Regd.) and Anr. Vs Union of India and ORS. (Delhi High Court)

Here the main question to answer by the court is whether it can be permitted to deny ITC to recipient for the fault of supplier? Via this petition, challenge has been laid to the constitutional vires of Section 16(2)(c) of the Central Goods and Service Tax Act, 2017 (in short ‘CGST Act’) as also Rule 36(4) and 86A(1)(b) of the Central Goods and Service Tax Rules, 2017 [in short ‘CGST Rules’].

HC List the captioned petition on 26.07.2021 along with the connected writ petitions, i.e., W.P.(C) Nos. 6293/2019, 6914/2020, 6895/2020, W.P.(C) 13154/2019, and W.P.(C) 13097/2019.

FULL TEXT OF THE INTERIM HIGH COURT ORDER

CM APPLs. 16073/2021, 16074/2021

1. Allowed, subject to just exceptions.

CM APPL. 16075/2021

2. The prayer made in the captioned application is to grant exemption from filing attested affidavits along with the writ petition. The prayer made in the captioned application is allowed, subject to the petitioners placing on record the attested affidavits, within three days of the resumption of the normal functioning by this court.

3. The application is, accordingly, disposed of.

W.P.(C) 5237/2021

4. Via this petition, challenge has been laid to the constitutional vires of Section 16(2)(c) of the Central Goods and Service Tax Act, 2017 (in short ‘CGST Act’) as also Rule 36(4) and 86A(1)(b) of the Central Goods and Service Tax Rules, 2017 [in short ‘CGST Rules’].

5. We are informed by Mr. Rajat Mittal, appearing on behalf of the petitioner, that there are other petitions pending adjudication before this Court, which raise issues, that are similar to the ones, that subsist in the instant writ petition.

6. Accordingly, issue notice.

7. Ms. Sonu Bhatnagar accepts notice on behalf of the respondent nos. 2 and 3, while Mr. Ripudaman Bhardwaj accepts notice on behalf of the respondent no.1/Union of India.

8. Counter-affidavit(s) will be filed within four weeks. Rejoinder(s) thereto, if any, will be filed before the next date of hearing.

9. List the captioned petition on 26.07.2021 along with the connected writ petitions, i.e., W.P.(C) Nos. 6293/2019, 6914/2020, 6895/2020, W.P.(C) 13154/2019, and W.P.(C) 13097/2019.