Abdul Vahid vs. State Tax Officer
Held
The Court repelled the challenge to the constitutional validity of Section 16(2)(c), citing its previous judgment in *M. Trade Links*. However, it set aside the assessment and appellate orders to the extent they denied ITC, remitting the matter to the 1st respondent to reconsider the petitioner's claim based on the directions in *M. Trade Links* and two specific circulars, while suspending coercive proceedings.
Facts
The petitioner, an assessee, was denied input tax credit for the year 2017-18 under Section 16(2)(c) of the CGST/SGST Acts through an assessment order, which was subsequently upheld in appeal. Being unable to file a further appeal due to the non-constitution of the Tribunal, the petitioner approached the High Court challenging the constitutional validity of Section 16(2)(c).
Key Issues
The key issues were the constitutional validity of Section 16(2)(c) of the CGST/SGST Acts and the petitioner's entitlement to input tax credit in light of specific circulars, despite the provisions of Section 16(2)(c).
Sections Cited
Section 16(2)(c), Circular No. 183/15/2022- GST, Circular No. 193/05/2023- GST
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 19TH DAY OF JULY 2024 / 28TH ASHADHA, 1946 WP(C) NO. 20792 OF 2024 PETITIONER/S: ABDUL VAHID,AGED 62 YEARS PROPRIETOR, M/S. NATIONAL TEA STORE, IKYA JUNCTION, KAYAMKULAM, ALAPPUZHA, PIN - 690502 BY ADVS. R.SREEJITH K.KRISHNA ACHYUTH MENON PADMANATHAN K.V. RESPONDENT/S: 1 STATE TAX OFFICER, STATE GST DEPARTMENT, MINI CIVIL STATION, KAYAMKULAM, ALAPPUZHA, PIN - 690502 2 THE JOINT COMMISSIONER (APPEALS), STATE GST DEPARTMENT, KOTTAYAM, PIN - 686002 3 UNION OF INDIA, REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK, NEW DELHI, PIN - 110001 4 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS, GST POLICY WING, NORTH BLOCK, NEW DELHI, REPRESENTED BY PRINCIPAL COMMISSIONER (GST)., PIN - 110001 5 STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPT., GOVT. SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695001 DR. THUSHARA JAMES, SR. GP SRI. SREELAL N. WARRIER, SC, THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 20792 OF 2024 2 JUDGMENT
The judgment continues below.
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