Section 16(2)(c) CGST Act 2017 Vires challenged in Orissa HC

M/s. Shree Gobind Alloys Pvt. Ltd. Vs Union of India and others (Orissa High Court)

Section 16(2)(c) of CGST Act, 2017 provides Input Tax Credit should be allowed to the recipient only when supplier has discharged the Output Liability through utilization of input tax credit admissible in respect of the said supply or by cash

1. The petitioner has challenged the Constitutional validity of Section 16(2)(c) of the CGST/OGST Act before the Hon’ble High Court of Orissa, Cuttack.

2. Today it was listed before the Hon’ble CJ Court.

3. After hearing, the Hon’ble Court  has been pleased to issue notice and fixed the next date of hearing to  21.09.2021.

4. In interim order, the Hon’ble Court has directed – All action in the mean while would be subject to outcome of this  Writ application

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. This matter is taken up by video conferencing mode.

2. Issue notice.

3. Mr. P.K. Parhi, learned Assistant Solicitor General accepts notice on behalf of Opposite Party No.1. One extra copy be served on him within a week.

4. Mr. C.S. Mishra, learned Advocate accepts notice on behalf of Opposite Party Nos.2 to 6. Required number of extra copies be served on him within a week.

5. Mr. S. Mishra, learned Advocate accepts notice on behalf of Opposite Party Nos.7 to 9. Required number of extra copies be served on him within a week.

6. Notice be issued to Opposite Party No.10 by Registered Post/Speed Post with A.D. making it returnable by the next date. Requisites be filed within a week. Tracking report be placed on record by the next date.

7. Reply be filed within eight weeks of service of notice.

Rejoinder thereto, if any, be filed by the next date.

8. List on 21st September, 2021.

I.A. No.7133 of 2021

1. All actions taken in the meanwhile would be subject to the outcome of the present writ petition. The application is disposed of.

2. As the restrictions due to resurgence of COVID-19 situation are continuing, learned counsel for the parties may utilize a printout of the order available in the High Court’s website, at par with certified copy, subject to attestation by the concerned advocate, in the manner prescribed vide Court’s Notice No.4587, dated 25th March, 2020 as modified by Court’s Notice No.4798, dated 15th April, 2021.