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Photo: Mint
Photo: Mint

HC issues notice to Centre on plea challenging provisions of CGST Act

  • The court has directed the parties to file counter affidavits within four weeks and rejoinder affidavits if any and the matter will be heard next on 15 September

NEW DELHI : The Delhi High court has issued notice to Centre and other respondents on a petition moved by Delhi International Airport Limited (DIAL) challenging the constitutional validity and legality of certain provisions of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017.

The court has directed the parties to file counter affidavits within four weeks and rejoinder affidavits if any and the matter will be heard next on 15 September.

In the petition, it has been averred that by the impugned provisions and , DIAL has been denied the input tax credit against works contract services as well as goods and services used in the construction of an immovable property.

The petitioner’s counsel also submitted that the challenged provisions and impugned circular are violative of Article 14 of the Constitution and are a complete departure from the rationale and objective of introducing GST which was to avoid the cascading effect of taxes and removal of breaks in the tax chain.

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