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TMI BlogA Critical Analysis of the Constitutional Validity of Section 16(4) of the CGST/BGST Act and the expression 'deprive of his right of property' under Article 300-A: The Patna High Court's StandX X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned section. The Core Issue The primary contention of the petitioners was the constitutional validity of Section 16(4) of the CGST/BGST Act. This section denies the entitlement of Input Tax Credit (ITC) in respect of any invoice or debit note for supply of goods or services beyond the due date of furnishing returns under respective Acts. The petitioners argued that this was violative of Articles 14 and 300A of the Constitution of India. Alternative Arguments Petitioners sought an alternative declaration that the conditions in Section 16(4) are procedural and should not override substantive conditions for availing ITC as outlined in Sections 16(1) and 16(2). Moreover, they contended that GSTR-3B cannot be treated as a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed and protected by law. Upon examining Section 16 of the CGST/BGST Act, the court found sub-section (4) as a condition for entitlement to ITC, not violative of Article 300-A or any fundamental rights under the Constitution. The court held that fiscal legislation with uniform application cannot be said to be violative of Article 19(1)(g) and dismissed the writ applications, affirming the constitutional validity of sub-section (4) of Section 16 of the CGST/ BGST Act. Implications and Conclusion This judgment upholds the stringent conditions attached to ITC under the GST regime, emphasizing compliance for its availing. It affirms the government's right to impose conditions on fiscal benefits like ITC and sets a precedent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ITC by the operation of Section 16(4) infringes upon the constitutional right under Article 300-A. This article protects the right to property, ensuring that no person is deprived of their property save by authority of law. The court observed that ITC becomes a vested right only upon fulfillment of conditions under the CGST/BGST Act. Therefore, it was crucial to determine if ITC could be considered 'property' in the legal sense and if its denial amounted to an infringement of this right. Court's Interpretation of Property in Relation to ITC The court, upon examining the provisions of the CGST/BGST Act, concluded that ITC is conditional and contingent upon compliance with the statutes. It noted that the right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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