9911796707
TMI Blog2025 (1) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned notice while proposing to invoke Section 17(5) of the GST Act had only stated that the Input Tax Credit shall not be available in respect of the list of commodities and services mentioned and does not set out the reasons nor the clauses under Section 17(5) which gets attracted and results in denial of the petitioner's claim of Input Tax Credit. To appreciate the above contention of the petitioner it may be relevant to extract Section 17(5) of the GST Act which reads as under: "17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles for transportation of persons having approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod up to Financial Year 2023- 24]" 2.1. A reading of the above provision would show that there are several circumstances which would render a taxable person ineligible to claim Input Tax Credit. 3. It was submitted by the learned counsel for the petitioner that in response to the notice, they had stated that they are only engaged in trading of goods which are purchased and there is no further process at their end. Further no part of the inputs on which credit was claimed was being utilised by the petitioner for personal consumption or for construction of own building. The learned counsel for the petitioner would also submit that they were ready and willing to produce the tax invoices of Inward supply of taxable goods for the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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