Constitutional challenge to GST input tax credit provision proceeds without interim relief, with pleadings and impleadment directed.

A writ petition challenged the constitutional validity of Section 16(2)(c) of the CGST Act and the corresponding State GST provision, but no interim relief was granted at that stage. The Court directed the respondents to file affidavits and allowed the petitioner to file a reply, keeping the matter pending for final hearing. Because the State GST provision was also under challenge, the State of West Bengal and the concerned State GST authority were impleaded. The pendency of the petition was clarified not to bar the petitioner from making a representation against the audit report, which was to be considered in accordance with law.

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Issues: Whether any interim order should be passed in a writ petition challenging the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 and the corresponding State Goods and Services Tax Act, 2017; and whether consequential directions for pleadings, impleadment, and liberty to make representation were warranted.

Analysis: The petition raised a direct challenge to the constitutional validity of the impugned GST provisions, and the Court declined to grant interim relief at that stage. The respondents were directed to file affidavits and the petitioner was permitted to file a reply. Since the validity of the State GST provision was also under challenge, the State of West Bengal and the concerned State GST authority were directed to be added as parties. The pendency of the petition was clarified not to prevent the petitioner from making a representation against the audit report, which was to be considered in accordance with law.

Outcome: No interim order was granted. The matter was kept pending for final hearing with directions for pleadings and impleadment.

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