Ronak Yarn VS Union Of India

The petitioner has brought a case before this Court seeking several reliefs. Firstly, they request the issuance of a writ of certiorari or any other suitable writ, order, or direction to nullify and revoke the contested order under section 73 dated May 23, 2022, issued by respondent no. 05. They further seek direction for the respondents to permit the petitioner to claim credit after validating its authenticity.

Secondly, the petitioner urges the Court to issue a writ, order, or direction declaring Section 16(2)(c) of the Central Goods and Services Tax (CGST) or the respective State Goods and Services Tax (GGST) Act, 2017 as ultra vires, beyond the scope of the Act, and in violation of Articles 14, 19(1)(g), and 300A of the Constitution of India.

The petitioner argues that the impugned order under section 73 unfairly denies them credit without proper verification and contravenes their rights under the Constitution. They contend that Section 16(2)(c) imposes unjust restrictions on their ability to claim input tax credit, infringing upon their fundamental rights. Alternatively, they seek the aforementioned reliefs.

The petitioner in this case has approached the Court seeking several reliefs. Firstly, they request the issuance of a writ of certiorari or any other appropriate writ, order, or direction to nullify and invalidate the order dated 23.05.2022, issued by respondent no. 05 under section 73. They ask that the respondents be directed to allow credit to the petitioner after verifying its authenticity.

Secondly, they seek a writ, order, or direction declaring Section 16(2)(c) of the CGST/GGST Act, 2017, as ultra vires and outside the scope of the Act. They argue that this section violates Articles 14, 19(1)(g), and 300A of the Constitution of India. Alternatively, they request a writ, order, or direction to interpret Section 16(2)(c) in a manner that aligns with the Constitution, stating that input tax credit (ITC) should only be denied in cases where purchases are proven to be collusive or sham transactions.

In essence, the petitioner challenges the legality of an order issued by respondent no. 05 and questions the constitutionality of a specific provision within the CGST/GGST Act, 2017, regarding the denial of input tax credit, suggesting either its nullification or a reinterpretation in accordance with constitutional principles.

The petitioner in this case is seeking several reliefs from the Court. Firstly, they request the issuance of an appropriate writ, such as a writ of certiorari, to quash and set aside an order issued by respondent no. 05 under section 73 on May 23, 2022. The petitioner asks that the respondents be directed to allow credit to the petitioner after verifying its validity.

Secondly, the petitioner seeks a declaration that Section 16(2)(c) of the CGST/GGST Act, 2017 is ultra vires (beyond the powers) and in violation of Articles 14, 19 (1) (g), and 300A of the Constitution of India. Alternatively, if the constitutional validity of the provision is upheld, the petitioner requests that the Court read down the section, stipulating that Input Tax Credit (ITC) will only be denied in cases where purchases are proven to be collusive or sham transactions.

As an interim relief, the petitioner asks for a writ or order to stay the implementation of the impugned order under section 73 of the CGST/GGST Act dated May 23, 2022, and directs the respondents not to take any coercive action against the petitioner until the final disposal of the petition.

Lastly, the petitioner seeks any other orders, directions, or reliefs that the Hon’ble Court deems fit and proper in the circumstances of the case and in the interest of justice. The petitioner expresses gratitude for any assistance granted by the Court and pledges to pray for the Court’s kindness.

The petitioner in this case is seeking several reliefs from the court:

1. They request the issuance of a writ of certiorari or any other appropriate writ/order/direction to quash and set aside an order dated May 23, 2022, issued by respondent no. 05 under Section 73. They want the respondents to allow the petitioner credit after verifying its accuracy.

2. They seek a writ/order/direction declaring Section 16(2)(c) of the CGST/GGST Act, 2017 as ultra vires and violative of Articles 14, 19(1)(g), and 300A of the Constitution of India. Alternatively, they request a writ/order/direction to read down Section 16(2)(c) to deny Input Tax Credit (ITC) only in cases of proven collusive and sham transactions.

3. As an interim relief, they ask for a writ/order/direction to stay the implementation of the impugned order under Section 73 dated May 23, 2022, and to prevent coercive actions against the petitioner until the final disposal of the petition.

4. They request the court to issue any other relief it deems fit and proper in the interest of justice.

5. Finally, they express gratitude and pray for kindness.

The petitioner argues that they have fulfilled all conditions under Section 16 of the CGST/GGST Act and made a legitimate claim for Input Tax Credit (ITC) on supplies. However, due to an error by M/s. Bhilosa Industries Private Limited, the GST number of M/s. Ronak Traders, the petitioner’s sister concern, was reported instead of the petitioner’s GST number in Form GSTR-1. Consequently, the supply did not reflect in the petitioner’s return in Form GSTR-2A. M/s. Bhilosa Industries Private Limited acknowledges the mistake and has provided rectification details.

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