2020(07)LCX0082

Punjab & Haryana High Court

Vij Engineers and Consultants Pvt. Ltd

Versus

Union of India and others

CWP-8885-2020 decided on 10/07/2020

CWP-8885-2020

Vij Engineers and Consultants Pvt. Ltd.
Vs
Union of India and others

Present:
Mr. Amrinder Singh, Advocate for the petitioner.
Mr. Satya Pal Jain,Additional Solicitor General of India with
Mr. Tajender Joshi, Advocate for the respondents.

Heard through video conferencing.

The constitutional validity of Section 16(2)(C) of the CGST Act, 2017 and Rule 86A of the CGST Rules, 2017 has been challenged on the ground that ITC credit in the electronic ledger of the purchaser dealer cannot be blocked in the light of fulfillment of all the statutory conditions except ensuring that the errant supplier/seller does deposit the tax collected from the purchaser, over which the bonafide purchaser has no control.

Upon notice, a short reply has been filed without defending the vires of above-said section and the rule.

Learned counsel submits that although the entire tax liability of the petitioner stands extinguished using the credit liability, however, the electornic portal did not permit filing of returns till the extended date of 30.06.2020 without payment of tax and blocking of the electronic credit ledger. It is urged that the petitioner has to urgently dispatch consignment of goods for construction of bridges in Leh-Ladakh region for the Indian Army pursuant to the contract awarded by GREF, which is impeded in view of Rule 138 E of CGST Rules not permitting to issue electronically generated e-way bills. Thus, learned counsel for permitting the filing of returns and issuance of e-way bills has made an interim offer for securing the revenue, while simultaneously permitting the execution of the contract for the Indian Army.

Learned Additional Solicitor General of India is not averse to such a solution.

Learned counsel for the petitioner prays for two days’ time to place the offer in writing on record, with an advance copy to Mr.Satya Pal Jain, Additional Solicitor General of India.

List on 14.07.2020 for interim directions'.

 ( JASWANT SINGH )
JUDGE

( SANT PARKASH )
 JUDGE

Equivalent .