- (1.) This writ petition contains, inter alia, vires challenge against provisions in section 16(2)(c) and section 42 in Central Goods and Service Tax Act, 2017, with prayer for interim order for refund of allegedly wrongfully availing Input Tax Credit (ITC), paid, under protest, by petitioners.
(2.) Mr. Kar, learned senior advocate appears on behalf petitioners and submits, his clients is a registered person, entitled to avail ITC on having paid Input tax for purchasing raw materials, used to manufacture finished goods. He submits, ITC stands denied to his client. The Department caused searches of his clients' premises, during which they were made to pay additional output tax on allegedly excess ITC claimed on inward supply. He draws attention to disclosure at page 168, to demonstrate Rs.11,56,363/- was paid under protest for ITC reversal against his clients' suppliers Rajbhar Trade Commercial and Daania Trading Pvt. Ltd., for November, 2017. He prays for interim orders.
(3.) Mr. S. Bhattacharya, learned advocate appears on behalf of Union of India and submits, enquiry by investigation is under way. He draws attention to clause (b) under sub- section (2) in section 16 to submit, the Department has reasons to believe, ITC was claimed by petitioners against goods not received. The payment was voluntary. It was against disclosures of suppliers. Prescribed procedure will be followed. On discovery of such suppliers and others, as might be revealed in investigation, the department will unearth further wrongful claims to ITC by petitioners. He wants direction to file affidavit.;