The Supreme Court of India heard the case Chief Commissioner of Central Goods And Service Tax & Ors. v. M/s. Safari Retreats Private Limited & Ors. [Civil Appeal No. 2948/202] on August 17, 2023.
The ASG argued that the law denies credit when goods/services are used “on own account,” a term that is not clearly defined. He also argued that immovable property (e.g., malls) is not subject to GST, and using credits from stages before property construction for rental services contradicts the GST framework. The ASG also cited the VKC Footsteps case and argued that credits cannot be granted solely based on economic rationale. He asserted that even in the pre-GST era, such credit claims were not allowed, and there’s no vested right to claim them.
The matter has been listed for further hearing on August 23, 2023.
The order copy can be accessed at: https://main.sci.gov.in/supremecourt/2019/37367/37367_2019_7_104_46130_Order_17-Aug-2023.pdf
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