Section 16(4) of CGST Act is Constitutionally Valid & Not violative of Articles 19(1) (g) or Article 300-A of Constitution of India | HC
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Case Details: Gobinda Construction v. Union of India - [2023] 154 taxmann.com 311 (Patna)
Judiciary and Counsel Details
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- Chakradhari Sharan Singh & Madhuresh Prasad, JJ.
- D.V. Pathy, Gautam Kumar Kejriwal, Anurag Saurav, Archana Sinha & Archana Shahi for the Petitioner. & Others.
- Dr K.N. Singh, Dr Krishna Nandan Singh, Vikash Kumar & Vivek Prasad for the Respondent.& Others.
Facts of the Case
In the present petition, the petitioner challenged the constitutional validity of Section 16(4) of the Central Goods and Services Tax (CGST) Act, 2017 which denies entitlement of Input Tax Credit (ITC) in respect of any invoice or debit note for supply of goods or services or both after 30th November following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. It was contended that this provision was violative of Articles 14 and 300A of the Constitution of India.
High Court Held
The Honorable High Court noted that the language of Section 16 of CGST Act suffers from no ambiguity and clearly stipulates that ITC shall be available subject to conditions and restrictions put thereunder. In order to invoke Article 300-A of Constitution by a person, two circumstances must jointly exist i.e. deprivation of property of a person and lack of sanction of law.
However, the provision under sub-section (4) of section 16 is one of conditions which makes a registered person entitled to take ITC and by no means it can be said to be violative of article 300-A of Constitution of India. Further, the fiscal legislation having uniform application to all registered persons, cannot be said to be violative of Article 19(1)(g).
Thus, the Court held that the sub-section (4) of section 16 of CGST Act is constitutionally valid and not violative of Article 19(1)(g) and Article 300-A of Constitution of India.
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