Delhi HC Notice on GST Act Challenge | Urgent Petition Hearing, Next Date Set
The Delhi High Court acknowledges the urgency of the petition challenging the constitutional validity and legality of certain provisions in the Central Goods and Services Tax Act, 2017, and the Delhi Goods and Services Tax Act, 2017, as well as Circular No.28 dated 01st January, 2018. The court issues notice to the respondents, directs them to file counter-affidavits within four weeks, and schedules the next hearing for 15th September, 2020. The court conducts the hearing via video conferencing, grants exemption in one application, disposes of another, and sets the case for further proceedings.
Issues: Challenge to constitutional validity and legality of Section 17(5)(c) and Section 17(5)(d) of the Central Goods and Services Tax Act, 2017, and the Delhi Goods and Services Tax Act, 2017, along with Circular No.28 dated 01st January, 2018.
The petition before the Delhi High Court challenges the constitutional validity and legality of specific provisions in the Central Goods and Services Tax Act, 2017, and the Delhi Goods and Services Tax Act, 2017, as well as Circular No.28 dated 01st January, 2018. The petitioner alleges that these provisions and circular have resulted in the denial of Input Tax Credit for tax paid on works contract services and goods and services used in the construction of immovable property, despite being utilized for business purposes and providing taxable supplies liable to GST. The petitioner argues that these provisions and circular violate Article 14 of the Constitution and deviate from the intended purpose of GST, which was to prevent tax cascading and breaks in the tax chain.
The learned senior counsel for the petitioner highlights that previous cases, such as Bamboo Hotel and Global Centre (Delhi) Pvt. Ltd. v. UOI and Riveria Commercial Developers Limited V. Union of India, where similar issues were raised, have been acknowledged by the court. Consequently, the court issues notice to the respondents. Mr. Amit Bansal, Advocate, accepts notice on behalf of respondent nos.1, 3 & 4, while Ms. Bhawana Kataria, Advocate, accepts notice for respondent no.2. The court directs the respondents to file counter-affidavits within four weeks and allows for rejoinder-affidavits, if any, before the next hearing scheduled for 15th September, 2020, in conjunction with the aforementioned related cases.
In conclusion, the Delhi High Court acknowledges the urgency expressed in listing the petition and conducts the hearing via video conferencing. The court grants exemption subject to exceptions in one application and disposes of another application accordingly. The case is set for further proceedings, and the order is to be uploaded on the website promptly, with copies sent to the counsels via email.
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