Bombay High Court admits the constitutional challenge to Section 16(2)(c) of CGST i.e. default in payment of taxes by Supplier

Last updated: 09 October 2025

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The Bombay High Court has accepted a constitutional challenge to Section 16(2)(c) of the CGST Act, which relates to input tax credit being denied if the supplier defaults on tax payments. The court noted conflicting judgments from other High Courts and has issued a notice to the Attorney General. While granting interim protection from GST recovery, the court requires the petitioner to deposit ₹20 lakhs.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of Christie's India Private Limited v. Union of India & Ors. [Writ Petition (L) No. 16964 of 2025, order dated September 20, 2025] held that the constitutional validity of Section 16(2)(c) of the CGST Act, 2017, and the corresponding Maharashtra GST provision, warrants full consideration given conflicting judgments by different High Courts. The Court issued notice to the Attorney General and granted interim protection from GST recovery, subject to a conditional deposit by the Petitioner.

Citation :
[Writ Petition (L) No. 16964 of 2025, order dated September 20, 2025

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5881_bom_hc_christie_india_private_limited.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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