GST input-tax condition upheld as constitutional; writ against show cause notice not entertained due to statutory remedy.

A constitutional challenge to the GST input-tax condition in Section 16(4) read with Rule 61(5) was rejected because the provision had already been upheld by other High Courts applying Supreme Court principles on comparable taxation schemes. With that challenge failing, the court did not examine the merits of the writ against the show cause notice and treated the existence of an effective statutory remedy under the GST enactments as a reason not to entertain the writ petition.

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Issues: Whether Section 16(4) of the goods and services tax enactments read with Rule 61(5) of the Karnataka Goods and Services Tax Rules, 2017 is unconstitutional, and whether the writ petition challenging the show cause notice was maintainable in view of the statutory remedy.

Analysis: The challenge to the constitutional validity of the impugned provision was not accepted, the provision having already been upheld by other High Courts applying the principles laid down by the Supreme Court on analogous taxation provisions. Once that challenge failed, the grievance against the show cause notice was not examined on merits, and the petitioner was left to pursue the remedy available under the GST enactments.

Conclusion: The constitutional challenge was rejected and the writ petition was dismissed.

Ratio Decidendi: A constitutional challenge to a GST input-tax condition will not succeed where the provision has been upheld on comparable statutory schemes, and a writ petition need not be entertained against a show cause notice when an effective statutory remedy remains available.

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