The Supreme Court dismissed the transfer petition of Union of India pending before Various HC challenging constitutional validity of Section 16(2)(c) of the CGST Act.
These transfer petitions have been filed by the Union of India under Article 139A read with Article 142 of the Constitution of India seeking transfer of two Writ Petitions to this Court, i.e., M/s. Cummins Technologies vs Union of India’ pending before the High Court of Madhya Pradesh at Indore and ‘M/s. SPL Infrastructure Private Limited v. Assistant Commissioner of State Tax, Narasannapeta and Ors.’ pending before the High Court of Andhra Pradesh at Amaravati. In both these Writ Petitions, the constitutional validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 has been challenged.
Moreover, the constitutional validity of Section 16(2)(c) of the CGST Act has been challenged in 34 other writ petitions, which are stated to be pending across nine High Courts in the country.
Section 16(2)(c) of Central Goods and Services Tax Act, 2017 provides that a registered dealer would be eligible for claiming input tax credit on the goods purchased on the condition that the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of such supply.
According to the Solicitor General, since the issue has implications on a number of matters pending across the country and also ramifications of huge amounts payable under the said Act, it would be appropriate if this Court hears all the matters.
Even though the Solicitor General insisted for transfer of cases pending before various High Courts to this Court, we are not inclined to entertain these transfer petitions, for the reason that various High Courts are already seized of the matters. In particular, in the matter before the High Court of M.P., Indore Bench, counter affidavit is already stated to have been filed.
The three judge bench headed by the Chief Justice, Justice Surya Kant and Justice Hima Kohli requested the High Court of Madhya Pradesh, Indore Bench to dispose of the Writ Petition, pending adjudication before it, as early as possible and preferably within a period of two months’ time from the date of communication of this Order.
“So far as other Writ Petitions, which are pending before various High Courts, it is open for the parties to bring this Order to the notice of the concerned High Courts and seek expeditious disposal of their cases,” the Apex Court said.
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