Challenge to GST Act Section & Rule Amendment Jurisdiction Issue

The challenge to the vires of Section 16(4) of the Central Goods and Services Tax Act, 2017, along with the declaration sought regarding the amendment to Rule 61(5) of the Central Goods and Services Rules, 2017, and questioning the demand letter for payment of Input Tax Credit, as well as quashing the blocking of amount in the Input Tax Credit ledger, and setting aside a letter issued by Respondent No. 4, were not adjudicated by the current Bench due to lack of jurisdiction. The matter has been directed to be listed before the appropriate Division Bench for further resolution.

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Issues involved:
Challenge to the vires of Section 16(4) of the Central Goods and Services Tax Act, 2017; Declaration sought regarding the amendment to Rule 61(5) of the Central Goods and Services Rules, 2017; Questioning the demand letter for payment of Input Tax Credit; Quashing of blocking of amount in Input Tax Credit ledger; Setting aside a letter issued by Respondent No. 4.

Analysis:
The petitioner has challenged the vires of Section 16(4) of the Central Goods and Services Tax Act, 2017, which imposes a time limit for availing Input Tax Credit, alleging violation of Articles 14, 19(1)(g), and 300A of the Constitution of India, as well as the basic structure of the Act. Additionally, the petitioner seeks a declaration against the amendment to Rule 61(5) of the Central Goods and Services Rules, 2017, inserted through Notification No. 49/2019, claiming it violates constitutional provisions and affects their right to avail tax credit. The demand letter dated 13th February, 2020, asking for payment of a specific amount availed as Input Tax Credit is challenged as arbitrary, unreasonable, and against the scheme of the Act and Rules. Moreover, the petitioner contests the blocking of an amount in the Input Tax Credit ledger through Annexure-7 letter dated 15.05.2020, alleging it contravenes Rule 86A of the Central Goods and Services Tax Rules, 2017. Consequential relief is sought to set aside a letter issued on 17.06.2020 by Respondent No. 4, claiming it is arbitrary concerning the scheme of the Central Goods and Services Tax Act, 2017, and its prescribed rules.

The Respondent representing the Central Goods and Service Tax Department has indicated an intention to file a counter affidavit in response to the petition. Additionally, the Respondent's counsel has expressed the need to seek instructions in the matter. However, the Court notes that the subject matter of the case does not align with the jurisdiction of the present Bench. Consequently, the matter is directed to be listed before the appropriate Division Bench based on the current roster distribution for further adjudication and resolution.

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