GST DAILY – 283

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HC issued notice to Govt. on constitutional validity of Section 16(2)(c) of CGST Act

THE HON’BLE GUJARAT HIGH COURT IN THE CASE OF PRAVINBHAI MOHANBHAI VADI V/s DEPUTY COMMISSIONER OF STATE-TAX ENFORCEMENT DIVISION 10, decided on 10-6-2024

 👉 Issue:-

✔️ Is it justified if tax has been demanded due to cancellation of registration of supplier and they had not paid it?

👉 The Hon’ble High Court Judgement:-

✔️ Where assessee challenged vires of provisions of section 16(2)(c) of CGST Act as; purchaser of goods for seeking entitlement for Input Tax Credit was imposed with discharging burden that seller was registered under CGST Act and that he actually paid tax on goods supplied by him; in respect of such supply seller actually paid GST for which Input Tax Credit was admissible, case was to be heard with Special Civil Application No.15188 of 2020, no coercive steps was to be taken against assessee during pednency of instant petitions.

Section 16(2)(c) of Central Goods and Services Tax Act, 2017