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Constitutional validity of Section 16(2)(c) of the CGST Act, 2017 and Rule 86A of the CGST Rules, 2017

Section 16(2) of the CGST Act and rule 86A of the CGST Rules— Blocking of ITC – The petitioner challenged the constitutional validity of Section 16(2)(C) of the Act and Rule 86A of the Rules 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. The petitioner submitted that he has to urgently dispatch consignment of goods for construction of bridges, which is impeded in view of Rule 138E of Rules not permitting to issue electronically generated e-way bills.
Held that:- The Hon’ble High Court listed the matter on 14.07.2020 for interim directions.—Vij Engineers And Consultants Pvt. Ltd. Vs. Union of India And Others [2020] 26 TAXLOK.COM 020 (P&H)