Constitutional challenge to GST input tax credit restriction admitted, but the related show cause notice was not stayed.

The constitutional validity of Section 16(4) of the Goods and Services Tax Act, 2017 was admitted for examination, leaving that challenge pending for adjudication. The challenge to the show cause notice dated 26.05.2022 was not entertained, and no interim stay of its operation was granted. The application for interim relief was therefore rejected, while the validity challenge under Section 16(4) continues.

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Issues: Whether Section 16(4) of the Goods and Services Tax Act, 2017 was liable to be examined on the challenge to its validity, and whether the show cause notice issued under that provision should be entertained or stayed.

Analysis: The petition was admitted on the challenge to the validity and legality of Section 16(4) of the Goods and Services Tax Act, 2017. The challenge to the show cause notice dated 26.05.2022 was not entertained, and consequently no stay of its operation was called for. The application for interim relief was rejected.

Outcome: The constitutional challenge to Section 16(4) remains pending for adjudication, while the challenge to the show cause notice and the request for interim relief were declined.

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