2025 (2) TMI 61 - HC - GST

Vires of the provisions of Section 16(2)(c) of the State Goods and Services Tax Act 2017 (SGST Act) identical to the Central Goods and Services Tax Act 2017 - seeking entitlement for Input Tax Credit - It was submitted that the purchaser will be required to show that the seller has in respect of all past transaction made by him in relation to goods supplied by him had utilized the input tax credit which was in respect of such supplies. HELD THAT - Issue Rule returnable on 04.12.2024. By way of ad-interim relief no coercive steps shall be taken by the respondent authorities during the pendency of this petition.

Summary

**Summary of Judgment: Gujarat High Court****Case Overview:**- **Court:** Gujarat High Court- **Judges:** Honourable Mr. Justice Bhargav D. Karia and Honourable Mr. Justice D.N. Ray- **Petitioners' Counsel:** Krutarth K Desai and Mr. Abhay Y Desai- **Respondents' Counsel:** Mr. Raj Tanna (AGP) and Mr. Neel P Lakhani**Legal Challenge:**- The petition challenges the constitutionality of Section 16(2)(c) of the State Goods and Services Tax Act, 2017, which mirrors the Central Goods and Services Tax Act, 2017.**Petitioners' Argument:**- The petitioners argue that Section 16(2)(c) imposes an undue burden on purchasers seeking Input Tax Credit (ITC). Specifically, the purchaser must verify that: 1. The seller is registered under GST and has paid tax on the supplied goods. 2. The seller has paid GST for which ITC is claimed, necessitating verification of the seller's past transactions and utilization of ITC.**Court's Interim Order:**- The court issued a rule returnable by December 4, 2024.- Granted ad-interim relief preventing coercive actions by respondent authorities during the petition's pendency.- The case is to be heard alongside Special Civil Application No. 15188 of 2020 and related matters.