Rajasthan HC Directs Assessees to Pursue Pending ITC Disputes Under Section 16(5) & 16(6) of GST Act
The Rajasthan High Court recently delivered a pragmatic order in the case of Jagdamba Motors Vs Union of India, addressing the procedural path forward for businesses grappling with Input Tax Credit (ITC) disputes. The judicial intervention comes in the wake of significant legislative clarifications and a landmark Supreme Court judgment that fundamentally altered the landscape of ITC claims under the GST Act.
Rather than adjudicating the merits of the already settled constitutional validity, the High Court focused on providing a clear mechanism for the assessee to resolve their residual grievances with the tax authorities.
Background of the Litigation
The writ petitions brought before the Rajasthan High Court primarily revolved around the validity and implementation of specific provisions restricting Input Tax Credit. During the proceedings, legal representatives for both the assessee and the revenue department reached a consensus regarding the core legal questions.