Case Law Details
Sahil Enterprises Vs Union of India (Tripura High Court)
Hon’ble High Court of Tripura issued notice for the limited purpose of removing attachment of Input Tax Credit (ITC) ledger of assessee.
Facts:
Sahil Enterprises (Petitioner) has submitted that their ITC account is attached by Department on the ground that, supplier has not deposited the taxes and hence the Petitioner was not eligible to ITC in terms of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (CGST Act). The Petitioner has challenged the provisions contained under Section 16(2)(c) of the CGST Act, which states that, registered person shall be entitled to ITC only if the tax charged in respect of such supply has been actually paid to the Government by the supplier either in cash or through utilisation of ITC admissible in respect of the said supply.
The Petitioner contends that after paying taxes to the seller at the time of purchases, the Petitioner has no control over the seller to ensure that such tax is deposited with the Government. Denying ITC to the Petitioner where they have already paid tax would amount to double taxation.
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Author Bio
Sir,
Until & unless S.16(2)(c) is declared unconstitutional, the statutory provisions are to be comlied with.
CA OmPrakash Jain s/o J.K.Jain, Jaipur.
Tel :9414300730