MARUTI ENTERPRISE THROUGH ITS AUTHORIZED PARTNER, JIGNESHBHAI BHARATBHAI TARPARA v. UNION OF INDIA & ORS. – Gujarat High Court
High Court, Gujarat
A.S. Supehia, Justice & Pranav Trivedi, Justice
MARUTI ENTERPRISE THROUGH ITS AUTHORIZED PARTNER, JIGNESHBHAI BHARATBHAI TARPARA
v.
UNION OF INDIA & ORS.
R/Special Civil Application No. 18080 Of 2023, 5144 Of 2026, 9473 Of 2024, 9569 Of 2024, 15188 Of 2020, 4595 Of 2014, 17904 Of 2015, 13391 Of 2018, 13744 Of 2020, 16141 Of 2020, 16162 Of 2020, 16397 Of 2020, 1679 Of 2021, 1751 Of 2021, 3222 Of 2021, 3729 Of 2021, 15464 Of 2021, 5367 Of 2022, 7362 Of 2022, 12430 Of 2022, 18046 Of 2022, 18757 Of 2022, 1787 Of 2023, 19137 Of 2023, 19756 Of 2023, 21370 Of 2023, 2428 Of 2024, 3011 Of 2024, 3749 Of 2024, 6204 Of 2024, 6645 Of 2024, 8264 Of 2024, 8413 Of 2024, 8419 Of 2024, 8452 Of 2024, 8567 Of 2024, 8584 Of 2024, 8615 Of 2024, 8620 Of 2024, 8630 Of 2024, 8647 Of 2024, 8680 Of 2024, 9519 Of 2024, 16135 Of 2024, 735 Of 2025, 749 Of 2025, 848 Of 2025, 4615 of 2025, 6080 of 2025, 7369 Of 2025, 11022 Of 2025 dated 01.05.2026
Law : GST
Act Name : Central Goods & Servicse Tax Act, 2017
Relevant Section : Section 16, 38, 41, 49 & 53
Rule Number : Rule 36, 37, 37A, 59, 60, 86 & 86B
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of assessee
Vires of Section 16(2)(c) of CGST Act – Petitioners challenged constitutionality of provision mandating actual payment of tax by supplier to government as condition for availing Input Tax Credit (ITC) – Petitioners contended provision arbitrary, violative of Articles 14, 19(1)(g), 265, and 300A as it punishes bona fide purchasers for supplier’s default – Petitioners argued statute provides mechanical, GSTR-driven process where purchaser lacks means to verify supplier’s tax remittance – Alternatively prayed for reading down provision to exclude bona fide purchasers from denial of ITC in genuine transactions – Doctrine of reading down discussed as judicial tool to salvage legislation constitutionality by narrowing scope without invalidating entire statute – Held: Writ petitions to be decided on merits.
Represented By:
Counsel for the Petitioner: Tuhsar Hemani, Sr. Advocate with Poonam M Maheta, Narendra L Jani, Ashutosh S Dave, Jyotindrasinh J Vala, Dimple K. Gohil, Uchit N Sheth, Rahul L Gajera, Vinay Shraff for Parth S Shah, Avinash Poddar, Hiren J Trivedi, Abhay Y Desai, Krutarth K Desai, S M Ahuja, Advocates
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