ABHAY S. OKA, SANJAY KAROL
Chief Commissioner of Central Goods and Service Tax – Appellant
Versus
M/s Safari Retreats Private Ltd. – Respondent
JUDGMENT :
ABHAY S. OKA, J.
FACTUAL ASPECTS
1. The issues which broadly arise in this group of matters concern clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). There is a challenge to the constitutional validity of the said provision. There is a prayer for reading down the said provision.
2. In Civil Appeal Nos. 2948 and 2949 of 2023, the first respondent is engaged in the construction of a shopping mall for the purpose of letting out premises in the malls to different tenants. Vast quantities of material, inputs and services are required for the construction of the malls in the form of cement, sand, steel, aluminium, wires, plywood, paint, lifts, escalators, air-conditioning plants, electrical equipment, transformers, building automation systems etc., and also consultancy services, architectural services, legal and other professional services, engineering services and other services including the services of a special team of international designers specialised in the construction of Malls. These goods and services used in the construction of the mall are taxable under the CGST Act. It is the case of the first respo
Eicher Motors Limited & Anr. v. Union of India & Ors.
R.S. Raghunath v. State of Karnataka & Anr.
Union of India & Ors v. VKC Footsteps India Pvt. Ltd.
Commissioner of Central Excise, Ahmedabad v. Solid and Correct Engineering Works & Ors.
Clauses (c) and (d) of Section 17(5) of the CGST Act are constitutional, allowing for reasonable classification regarding input tax credit for construction of immovable property.
Section 16(4) of the CGST Act is constitutionally valid and does not violate Articles 14, 19(1)(g), or 300A of the Constitution.
Input Tax Credit (ITC) is a concession/benefit/rebate and the legislature is within its competency to impose certain conditions, including time prescription for availing such right.
Maintenance of township is not integrally tied to business activities, thus ITC claims related to township electricity supply are invalid.
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