L & T Geostructure LLP Vs Union of India (Madras High Court)
Madras High Court held that restrictions imposed under Rule 36(4) of the Central Goods and Services Tax (CGST) Rules, 2017 and Tamil Nadu Goods and Services Tax (TNGST) Rules, 2017 is not violative of Article 14 of the Constitution of India. Accordingly, writ petition dismissed.
Facts- In these Writ Petitions, the Petitioner has challenged the vires of Rule 36(4) of both Central Goods and Services Tax (CGST) Rules, 2017 and Tamil Nadu Goods and Services Tax (TNGST) Rules, 2017.
Conclusion- Restrictions imposed under Rule 36(4) of the respective GST Rules to avail full credit of Input Tax in absence of the mandatory compliance by the supplier of goods or service as is contemplated under Section 37(1) of the respective GST Acts was a temporary measure to regulate the availing of Input Tax Credit (ITC). Ipso facto, it cannot be held that Rule 36(4) of the respective GST Rules is in violation of Article 14 of the Constitution of India.
Held that the restrictions are reasonable and since they are intended to implement the laudable object of allowing legitimate / eligible Input Tax Credit (ITC). Therefore, the challenge to the restrictions imposed under Rule 36(4) of the respective GST Rules on the ground of it being arbitrary and violative of Article 14 of the Constitution of India cannot be countenanced. As such, these Writ Petitions are liable to be dismissed.
