2025 (1) TMI 291 - HC - GST

Seeking to issue a direction and declare section 16 (4) of the Central Goods and Services Act, 2017 as ultra vires - Imposition of time limit for the availment of Input Tax Credit being violative of Article 14, Article 19(1) (g) and Article 300 A of the Constitution of India and also being violative of the basic structure of the Central Goods and Services Tax Act, 2017 - direction to declare the amendment carried under Rule 61 (5) of the Central Goods and Services Rules, 2017 inserted vide Notification 49/2019-CT dated 09.10.2019 as ultra vires under which GSTR-3B - HELD THAT - The questions which were involved in the present writ applications has been considered by the G.S.T. Council Meeting and there is a recommendation made by 53rd G.S.T. Council Meeting on 22nd of June, 2024, wherein the G.S.T. Council has taken note of the claim made in the present writ applications. Consequent thereon, the recommendation of the G.S.T. Council has to be given due weightage in accordance with law, as a result of which, these writ applications stand disposed of in view of the recommendations of 53rd G.S.T. Council Meeting and, if any, other matter remaining for consideration, it is open to the petitioners to pursue the remedy in accordance with law before the appropriate Forum. Application disposed off.

Summary

In the case before the Jharkhand High Court, the petitioner sought a declaration that Section 16(4) of the Central Goods and Services Act, 2017, which imposes a time limit for availing Input Tax Credit (ITC), is ultra vires, violating Articles 14, 19(1)(g), and 300A of the Indian Constitution. The petitioner also challenged the amendment made under Rule 61(5) of the Central Goods and Services Rules, 2017, which retroactively validated GSTR-3B as a return under Section 39 of the CGST Act, 2017, claiming it interfered with vested rights.

Additionally, the petitioner requested the quashing of the Order-in-Appeal No. 32/CGST/RAN/2024 and the ex-parte Order-in-Original dated 23.03.2023, which required the reversal of ITC for the financial year 2018-19, along with interest and penalties, totaling Rs. 6,54,214/-. The petitioner argued these orders were arbitrary and against the CGST Act and Rules.

The court noted that the issues raised were considered in the 53rd GST Council Meeting on June 22, 2024, and the Council's recommendations should be given due weight. Consequently, the writ applications were disposed of in light of these recommendations, allowing the petitioner to pursue any remaining issues through appropriate legal channels.