2025 (3) TMI 59 - HC - GST

Challenge to validity of Section 16(2)(aa) of the CGST Act 2017/Assam Goods and Services Tax Act 2017 as well as the validity of Section 16(2)(c) of the said Acts - Revenue has submitted that he has no objection if the challenge to the Section 16(2)(c) of CGST Act/AGST Act is decided in terms of the decision dated 05.08.2024 2024 (8) TMI 836 - GAUHATI HIGH COURT - HELD THAT - The matter requires consideration. List the matter for hearing in due course.

Summary

The petitioner challenged the validity of Section 16(2)(aa) and Section 16(2)(c) of the Central Goods and Services Tax Act, as well as Rule 36 of the CGST Rules. The petitioner withdrew the challenge to Rule 36 as it was previously upheld. Regarding Section 16(2)(c), the court referenced a previous decision and ruled that the purchasing dealer cannot be denied Input Tax Credit if the selling dealer fails to deposit collected tax. The Revenue counsel agreed to this decision. The challenge to Section 16(2)(c) was decided based on the previous ruling. The validity of Section 16(2)(aa) is pending further consideration, and the court admitted the matter for future hearing without issuing formal notice to the respondents.