M/S Jmd Industries vs. Union Of INDIA & Ors.

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W.P.(C)/10871/2024HC DelhiGSTCNR DLHC01047982202423 August 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE SACHIN DATTA2 pages

For Petitioner: Mr. H.C. Bhatia, Mr. Ruchir Bhatia, Mr. Naveen Madan and Mr. Abhishek Anand, AdvFor Respondent: Mr. Ajay Jain, SPC along with Mr. Bijay Lakshmi, Mr. M.N. Mishra, Mr. Krishna Sharma and Ms. Shreya Jain, Advs. for R-1. Mr. Atul Tripathi, Sr.SC for R-2, 3 and 5. Mr. Avishkar Singhvi, ASC along with Mr. Vivek Kumar Singh, Mr. Shubham Kumar and Mr. Naved Ahmed, Advs. for GNCTD

AI SummaryRemanded

Facts

The petitioner challenged the constitutional validity of Section 16(4) of the CGST Act/DGST Act, which denied their input tax credit due to delay. The impugned order denied the credit based on this provision.

Held

The Court set aside the impugned order and remanded the matter to the Adjudicating Authority. This was to consider the claim afresh in light of the amendments introduced by the Finance (No.2) Act, 2024, specifically the new sub-section 5 of Section 16.

Key Issues

The primary issue was the denial of input tax credit under Section 16(4) of the CGST Act/DGST Act due to delay. The constitutional validity of this provision was also challenged.

Sections Cited

Section 16(4), Section 16

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 10871/2024 M/S JMD INDUSTRIES .....Petitioner Through: Mr. H.C. Bhatia, Mr. Ruchir Bhatia, Mr. Naveen Madan and Mr. Abhishek Anand, Adv. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Ajay Jain, SPC along with Mr. Bijay Lakshmi, Mr. M.N. Mishra, Mr. Krishna Sharma and Ms. Shreya Jain, Advs. for R-1. Mr. Atul Tripathi, Sr.SC for R-2, 3 and 5. Mr. Avishkar Singhvi, ASC along with Mr. Vivek Kumar Singh, Mr. Shubham Kumar and Mr. Naved Ahmed, Advs. for GNCTD. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE SACHIN DATTA

O R D E R % 23.08.2024

The petitioner has filed the present petition, inter alia, challenging the constitutional validity of Section 16(4) of the Central Goods and Services Tax Act, 2017 (hereafter the CGST Act)/Delhi Goods and Services Tax Act, 2017 (hereafter the DGST Act). The petitioner is essentially aggrieved by the order dated 25.04.2024 (hereafter the impugned order) whereby the petitioner’s claim for input tax credit has been denied, by virtue of Section 16(4) of the CGST Act/DGST Act, on account of delay.

The learned counsel for the parties state that in view of the enactment This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/09/2024 at 11:58:46

of Finance (No.2) Act, 2024, an introduction of sub-section 5 of Section 16 of the CGST Act/DGST Act, their grievance stands satisfied. If the matter is remanded to the Adjudicating Authority to consider the same in light of the amendments introduced by the Finance (No.2) Act, 2024. 3. Learned counsel for the petitioner also states that they are not pressing their constitutional challenge to the provisions of Section 16(4) of the CGST Act/DGST Act.

The learned counsel appearing for the respondents states that he has no objection it the impugned order is set aside and the matter is restored before the Adjudicating Authority to consider afresh in view of amended Section 16 of CGST Act/DGST Act.

In view of the above, the impugned order is set aside and the matter is remanded to the Adjudicating Authority to consider the same in the light of enactment of the Finance (No.2) Act, 2024. VIBHU BAKHRU, J SACHIN DATTA, J AUGUST 23, 2024/cl This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/09/2024 at 11:58:46

Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.