The Hon’ble Gujarat High Court in Maruti Enterprise upheld the constitutional validity of Section 16(2)(c) of the CGST Act, 2017 and declined to read it down, holding that the condition of actual payment of tax to the Government is integral to the statutory ITC chain and that the purchaser carries the burden of proving eligibility.
The Hon’ble High Court of Tripura, in the landmark case of M/S. Sahil Enterprises has delivered a pivotal judgment addressing the constitutional validity and interpretation of Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, 2017.
The Hon’ble Bombay High Court in the case of Christie’s India Private Limited held that the constitutional validity of Section 16(2)(c) of the CGST Act, 2017, and the corresponding Maharashtra GST provision, warrants full consideration given conflicting judgments by different High Courts.
The Hon’ble Gujarat High Court in R V Enterprises & Anr held that ITC is liable to be reversed under Section 16(2)(c) of the CGST Act where the supplier has not discharged output tax liability, and the purchaser fails to furnish evidence of genuine movement of goods and supporting documentation.
The Hon’ble Jharkhand High Court in the case of Sursarita Vanijya (P.) Ltd. disposed of the writ petition challenging the GST demand issued in Form GST DRC-07 on the ground that ITC had been availed in contravention of Section 16(2)(c) of the CGST Act, directing the assessee to avail the statutory remedy of appeal under Section 107 of the CGST Act and held that various issues had been pointed out regarding merit as also violation of principle of natural justice.
Assessment order rejecting claim for ITC on grounds of violation of Section 16(2)(c) was set aside as supplier had paid tax collected to government, though after the prescribed time.
The Hon’ble Kerala High Court in M/s. M. Trade Links has upheld the constitutional validity of Section 16(2)(c) and Section 16(4) of the CGST/SGST Act. After acknowledging the difficulties during the initial implementation years of GST, this Court has relieved the Petitioners by retrospectively extending the time limit to avail ITC to November 30 from the FY 2017-18 onwards.
The Hon’ble Orissa High Court in OSL Securities Ltd. granted interim stay in favour of the Assessee in case where the Assessee challenged the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017.
The Hon’ble Kerala High Court in the case of Nahasshukoor v. Assistant Commissioner [WA NO. 1853 OF 2023 dated November…
Taxpayers nationwide are subjected to the harsh consequences of Section 16(2)(c) of the Central Goods and Services Tax (“CGST”) /…
