M/S. Bluestone Jewellery And vs. Union Of INDIA

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.641 OF 2020 [T-RES] BETWEEN: M/S BLUESTONE JEWELLERY AND LIFESTYLE PRIVATE LIMITED SITE NO.89/2, LAVA KUSHA ARCADE, MUNNEKOLAL VILLAGE, OUTER RING ROAD, MARATHAHALLI, BANGALORE-560037 REPRESENTED BY ITS DIRECTOR, GAURAV SINGH KUSHWAHA, AGED ABOUT 40 YEARS, S/O SHIVRAJ SINGH KUSHWAHA. …PETITIONER (BY SRI. G.L. MOHAN MAIYA, ADVOCATE) AND: 1. UNION OF INDIA THROUGH THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NO.137, NORTH BLOCK, NEW DELHI-110001. 2. UNION OF INDIA THE SECRETARY, MINISTRY OF LAW AND JUSTICE, 4TH FLOOR, A WING, RAJENDRA PRASAD ROAD, SHASTRI BHAVAN, NEW DELHI-110001. 3. THE GOODS AND SERVICE TAX COUNCIL (GST COUNCIL) THE SECRETARY, OFFICE OF THE GST 2 COUNCIL SECRETARIAT, 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110001. 4. THE STATE OF KARNATAKA THROUGH THE PRINCIPAL SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE-560001. …RESPONDENTS (BY SRI.A. RAMESH GOWDA, HCGP FOR R4; SRI. B.S. VENKATANARAYANA, ADVOCATE FOR R1 TO R3) THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT RULE 89 (5) OF THE CENTRAL GOODS AND SERVICES TAX RULES, 2017, AS AMENDED VIDE NTOIFICATION NO.21/2018 - CENTERAL TAX DATED APRIL 18, 2018 AND NOTIFICATION 26/2018 - CENTRAL TAX DATED JUNE, 13 2018, VIDE ANENXURE- A AND B TO THE EXTENT THAT THE SAID PROVISIONS DENIES GRANT OF REFUND OF UNUTILISED TAX CREDIT IN RESPECT OF TAX PAID ON INPUT SERVICES, IS EX FACIE ULTRA VIRES THE CONSTITUTION OF INDIA AND THE PROVISIONS OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND IS WITHOUT AUTHORITY OF LAW, MANIFESTLY UNREASONABLE, DISCRIMINATORY, ILLEGAL AND VOID. THIS W.P. COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:- 3