Interim stay of GST demand refused in writ challenge to constitutional validity of input tax credit provision

A writ petition challenging the constitutional validity of section 16(2)(c) of the U.P. GST Act was admitted for final hearing, but a blanket stay of the SGST, CGST and penalty demand was declined. The Court applied the principle that interim protection against a revenue demand is not granted as a matter of course and requires a proper case for such relief. On that basis, the request for stay was refused and the tax demand remained unstayed.

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Issues: Whether interim relief by way of stay of the tax demand could be granted in a writ petition challenging the constitutional validity of section 16(2)(c) of the U.P. Goods and Services Tax Act, 2017.

Analysis: The writ petition was admitted for final hearing, but the request for a blanket stay of the demand for SGST, CGST and penalty was declined. The Court relied on the principle that interim protection against revenue demand is not to be granted as a matter of course in the absence of a made-out case for such relief.

Conclusion: Interim relief was refused and the demand was not stayed.

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