Bharti Airtel Limited vs. Union Of INDIA

Held

The Court disposed of the writ petitions on withdrawal, granting the petitioners liberty to avail alternative remedies and to independently challenge Section 16(2)(c) of the Central Goods and Services Tax Act, 2017. The Court explicitly stated that it was not expressing any opinion on the merits of the case. Therefore, no findings were made on the constitutional validity of Section 16(2)(c) or the validity of the impugned orders. The operative direction was to dispose of the petitions as withdrawn with liberty as prayed for, with no order as to costs.

Facts

The petitioners, Bharti Airtel Limited and Bharti Telemedia Limited, filed two writ petitions challenging Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, as ultra vires and unconstitutional. They also challenged separate orders dated 16.11.2020, passed by respondent No.6, which confirmed assessments of Rs.11,44,83,005/- and Rs.47,48,748/- respectively. These orders directed the petitioners to pay the confirmed tax amounts along with applicable penalty and interest under the Andhra Pradesh Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017. The petitions were filed before the High Court of Andhra Pradesh.

Key Issues

1. Whether Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, is ultra vires and unconstitutional? 2. Whether the orders dated 16.11.2020, passed by respondent No.6, confirming the tax demands, penalties, and interest, are valid? The petitioner argued that Section 16(2)(c) of the CGST Act, 2017, is unconstitutional. They sought permission to withdraw the writ petitions with liberty to avail alternative remedies and to independently challenge the said provision. The revenue (respondents 1 and 3) did not object to the withdrawal. Respondent No.4 made no comments. The revenue (respondents 2, 5, and 6) also did not object to the withdrawal.