Section 17 of the CGST Act, 2017— Input Tax Credit on works contract services -- The petitioner challenged the constitutional validity and legality of Section 17(5)(c) and Section 17(5)(d) of the Act, 2017 and Circular No.28 dated 01st January, 2018. The petitioner submitted that by the impugned provisions and circular, he has been denied the ITC of tax paid by it on works contract services as well as goods and services used in the construction of an immovable property (other than plant and machinery), despite such goods and services being used for purposes of business and to provide taxable supplies liable to GST. The petitioner submitted that the impugned 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.
Held that:-The Hon’ble High Court issued Notice and directed to list along with W.P.(C) No.5457/2019 and W.P.(C) No.11633/2019 on 15th September, 2020.—Delhi International Airport Ltd. Vs. Union of India & Ors. [2020] 26 TAXLOK.COM 059 (Delhi)