M/S. Saraswati Enterprises vs. State Of Rajasthan
Held
The Court held that the constitutional validity of Section 16(2)(c) of the CGST Act has been conclusively decided by the Supreme Court in the case of Bhandari Scrap Traders Vs. Union of India And Others. The Supreme Court, in its judgment dated 14.07.2026, affirmed the High Court of Gujarat's view and upheld the impugned judgment, dismissing the special leave petitions. Consequently, the Court found no grounds to declare Section 16(2)(c) unconstitutional or to read down its provisions. The relief sought concerning the constitutional validity of Section 16(2)(c) was therefore considered answered by the Supreme Court's decision. For any other grievances, the petitioner was granted liberty to approach the competent authority for redressal.
Facts
The petitioner, M/s. Saraswati Enterprises, filed a writ petition before the Rajasthan High Court challenging the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, 2017, read with Section 20 of the IGST Act, 2017. The respondents included the State of Rajasthan and the Union of India, along with various GST authorities. The core of the challenge was directed at the provisions of Section 16(2)(c) of the CGST Act. The matter was heard by a Division Bench of the High Court.
Key Issues
1. Whether Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, read with Section 20 of the IGST Act, 2017, is constitutionally valid? Petitioner's Argument: The petitioner challenged the constitutional validity of Section 16(2)(c) of the CGST Act. No specific arguments or reliance on authorities were recorded for the petitioner in the judgment. Revenue's Argument: The State submitted that the constitutional validity of Section 16(2)(c) of the CGST Act has already been upheld by the Supreme Court in the case of Bhandari Scrap Traders Vs. Union of India And Others (SLP (C) No.23931/2026) vide judgment dated 14.07.2026. Therefore, nothing further survives in the writ petition regarding this issue.
Sections Cited
Section 16(2)(c), Section 20
AI-generated summary — verify with the full judgment below
[2026:RJ-JP:43796-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 8729/2026 CNR: RJHC020433512026 | URN: CW / 19278U / 2026 M/s. Saraswati Enterprises, Through Its Proprietor Sh. Aakash Gaddh, Aged About 33 Years, S/o Sh. Rajiv Gaddh, R/o House No. 189, Shastri Colony, Ward No. 9, Jagadhri, Yamuna Nagar, Haryana-135001 ----Petitioner Versus
State Of Rajasthan, Through Excise Commissioner 2, Gumaniawala, Panchwati Udaipur, Rajasthan-313001
Union Of India, Through Finance Secretary, North Block, New Delhi.
Assistant Commissioner, Circle-B, Bharatpur, Kar Bhawan, Bharatpur
Superintendent
(Anti
Evasion),
Central
GST Commissionerate, Alwar A Block, Surya Nagar, Alwar
Deputy Commissioner (Anti Evasion-III), Central GST Commissionerate, Delhi West GST Bhawan, Plot No. 1, Retail Business Centre, Nangal Raya, Delhi-11046 ----Respondents For Petitioner(s) : Mr.Vansh Vinaik, Adv. (through VC) For Respondent(s) : Mr.Vigyan Shah, AAG with Mr.Deepak Mittal, Adv. Mr.Vedant Agrawal, Adv. for Mr.Bharat Vyas, ASG HON'BLE THE CHIEF JUSTICE MR. SANJAY K. AGRAWAL HON'BLE MR. JUSTICE SAMEER JAIN Order 28/10/2026
The petitioner
The judgment continues below.
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