M/s. Voylla fashion Pvt. Ltd. vs. Union of India (Rajasthan High Court); D.B. Civil Writ Petition No. 24375/2018; 31/10/2018
By way of this Writ Petition the petitioner has challenged the provision of Rule 89(5) of the CGST Rules, 2017 as amended vide Notification No. 21/2018-Central Tax dated 18/04/2018 and Notification No. 26/2018-Central Tax dated 13/06/2018 by way of which the computation mechanism of the Input Tax Credit to be refunded in case of inverted duty structure has been modified to exclude Input Services from the definition of Net ITC with retrospective effect thereby denying refund of Input Services.
The Petition was argued by Mr Pankaj Ghiya with Ms Priyamvada Joshi on the grounds of it being ultra vires the provisions of the new taxing Statute as it is discriminatory, capricious and promotes inequitable treatment. The Hon’ble Division Bench of Hon’ble Mr. Justice Mohammad Rafiq and Hon’ble Mr. Justice Goverdhan Bardhar on 31.10.2018 admitted the same and Notices were issued to the respondents.