SC Issues Notice in SLP Challenging Constitutional Validity of CGST Act’s Section 16(4)

Mrityunjay Kumar Vs Union of India & Ors. (Supreme Court of India)

Supreme Court notice on Mrityunjay Kumar’s challenge to CGST Act Section 16(4). Analysis of case implications and next hearing details.

Introduction: In a recent development, the Hon’ble Supreme Court of India issued notice in the Special Leave Petition (SLP) filed by Mrityunjay Kumar challenging the constitutional validity of Section 16(4) of the Central Goods and Services Tax Act, 2017 (CGST Act). The case stems from the judgment of the Hon’ble Patna High Court in Gobinda Construction v. Union of India, wherein the constitutional validity of Section 16(4) was upheld.

Case Details:

• Case Title: Mrityunjay Kumar Vs Union of India & Ors.
• SLP Number: SLP (C) No. 28270 of 2023
• Date of Order: January 3, 2024
• Previous Judgment: Gobinda Construction v. Union of India and Others [CWJC No. 9108 of 2021 dated September 8, 2023]

Contested Provision: Section 16(4) of the CGST Act / Bihar Goods and Services Tax Act, 2017, forms the crux of the dispute. The section stipulates that Input Tax Credit will be denied if any invoice or debit note is issued after the due date of furnishing returns.

Background: The challenge arises from the disagreement with the Hon’ble Patna High Court’s decision, where the constitutional validity of Section 16(4) was affirmed. The petitioner, Mrityunjay Kumar, has raised concerns regarding the implications of this provision on Input Tax Credit.

Next Hearing: The Supreme Court has scheduled the matter for further hearing on February 05, 2024, allowing both parties an opportunity to present their arguments.

Conclusion: The constitutional validity of Section 16(4) of the CGST Act is under scrutiny as the Supreme Court takes cognizance of the SLP filed by Mrityunjay Kumar. This case bears significance for businesses and taxpayers, as the outcome may impact the availability of Input Tax Credit in cases where invoices or debit notes are issued post the return filing due date.

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