2025 (1) TMI 1077

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.... is submitted by the learned counsel for the petitioner that the impugned notice while proposing to invoke Section 17(5) of the GST Act had only stated that the Input Tax Credit shall not be available in respect of the list of commodities and services mentioned and does not set out the reasons nor the clauses under Section 17(5) which gets attracted and results in denial of the petitioner's claim of Input Tax Credit. To appreciate the above contention of the petitioner it may be relevant to extract Section 17(5) of the GST Act which reads as under: "17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, nam....

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....ollowing supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitn....

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.... (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of [section 74 in respect of any period up to Financial Year 2023- 24]" 2.1. A reading of the above provision would show that there are several circumstances which would render a taxable person ineligible to claim Input Tax Credit. 3. It was submitted by the learned counsel for the petitioner that in response to the notice, they had stated that they are only engaged in trading of goods which are purchased and there is no further process at their end. Further no part of the inputs on which credit was claimed wa....