Sai Service Private Limited Thr. Its Auth. Rep. Nagesh Bhandary vs. Union Of INDIA, Thr. The Secretary, Dept. Of Revenue, Ministry Of Finance And 3 Ors
Held
The Court held that the circular dated 10.09.2024 issued by the Central Board of Indirect Taxes and Customs GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India, on the subject of clarification on availability of input tax credit in respect of demo vehicles, would prevail over the impugned order. The Court reasoned that since the circular clarified the entitlement to ITC on demo vehicles, and there was no dispute from the revenue regarding this entitlement in terms of the circular, the petitioner would be entitled to the benefit of the input tax credit. Consequently, nothing remained for consideration in the present petition.
Facts
The petitioner, Sai Service Private Limited, filed a writ petition before the Bombay High Court at Goa challenging an order. The Central Board of Indirect Taxes and Customs GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India, subsequently issued a circular dated 10.09.2024 concerning the availability of input tax credit (ITC) in respect of demo vehicles. The Court noted that this circular would prevail over the impugned order. There was no dispute that the petitioner was entitled to the benefit of ITC on demo vehicles as per the circular.
Key Issues
1. Whether the circular dated 10.09.2024 issued by the Central Board of Indirect Taxes and Customs GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India, prevails over the impugned order? Petitioner's contention: The petitioner implicitly argued that the subsequent circular should be applied, as it clarifies the entitlement to ITC on demo vehicles. Revenue's contention: The revenue did not explicitly argue against the applicability of the circular. The judgment notes that there was no dispute regarding the petitioner's entitlement to ITC on demo vehicles in terms of the circular.
AI-generated summary — verify with the full judgment below
WP 622 of 2024 Niti IN THE HIGH COURT OF BOMBAY AT GOA WRIT PETITION NO.622 OF 2024 SAI SERVICE PRIVATE LIMITED THR. ITS AUTH. REP. NAGESH BHANDARY ... PETITIONER Versus UNION OF INDIA, THR. THE SECRETARY, DEPT. OF REVENUE, MINISTRY OF FINANCE AND 3 ORS ... RESPONDENTS Mr Bharat Raichandani (through V.C.) with Mr Vibhav Amonkar, Advocates for the Petitioner. Ms Asha Desai, Central Government Standing Counsel for Respondent No.
Mr Devidas Pangam, Advocate General with Ms Maria Correia, Additional Government Advocate for Respondent No.
CORAM:- M. S. KARNIK & VALMIKI MENEZES, JJ. DATED :- 24th October, 2024 P.C.: Post the impugned order, the Central Board of Indirect Taxes and Customs GST Policy Wing, Department of Revenue, Ministry of Finance, Government of India, has issued a circular dated 10.09.2024 on the subject of clarification on availability of input tax credit in respect of demo vehicles. This circular dated 10.09.2024, therefore, will prevail over the impugned order. There is no dispute that the petitioner would be entitled for benefit of the input tax credit on demo vehicles in terms of the said circular dated 10.09.2024. 24th October
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