Challenge of Section 16(4) of the CGST Act

The vires of Section 16(4) of CGST Act has been challenged on various grounds including that it is an infringement of the fundamental rights guaranteed to the petitioner under Article 14 and 19 (1)(g) and the constitutional right granted under Article 300A of the Constitution of India.

 PATNA HIGH COURT in the case of Manokamna V/s The Union of India.

 The petitioner prayed for defreezing of the saving bank account of the proprietor. he petitioner is ready to deposit 20% of the remaining amount of tax in dispute in terms of clause (b) of Sub section (8) of Section 112.

The court observed that staying the impugned order in the light of Sub Section (8) of Section 112, would in sum and substance amount to staying the effect of Section 16(4) of the Act which this Court would restrain from doing.

 he Hon’ble High Court directed that if the petitioner deposits the liability amount in full subject to result of the writ application the saving bank account of the proprietor shall be de-attached.