Restrictions on availing Input Tax Credit (ITC) - constitutional validity of Section 16(4): A Landmark Judgment

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....ia questioned the constitutional validity of Section 16(4) of the Central Goods and Services Tax Act 2017 (CGST Act). This article delves into the intricate details of the court's findings and reasoning, shedding light on the interplay between taxation laws and constitutional principles. Case Overview The case involved a challenge to Section 16(4) of the CGST Act, which imposes a time limit ....

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.... the 'reasonable restrictions' under Article 19(6) of the Constitution​​. * Responses from Union of India and Other Respondents: The Union of India and other respondents argued that the writ petition was premature. They emphasized that ITC is a concession under the CGST Act, not a vested right, and thus subject to conditions in Section 16(4)​​. Court's Find....

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....iscretion in matters of economic policy and taxation. It stressed that judicial review cannot compel the legislature to extend the scope of fiscal legislation beyond its intended parameters​​. * Precedents and Comparative Analysis: Referencing various precedents, the court highlighted the principle that concessions or benefits under tax laws must comply with strict statutory condit....