In Writ Petition NO.2031 of 2018 -BOM HC- Bombay High Court upholds legality and constitutionality of Section 13(8)(b) and Section 8(2) of the Integrated Goods and Services Tax Act
Justice Sunil B. Shukre & Justice Abhay Ahuja [06-06-2023]

Read Order: Dharmendra M. Jani and Ors v. The Union of India and Ors

Chahat Varma

New Delhi, June 8, 2023: In a notable decision, the Bombay High Court has ruled that provisions of Section 13(8)(b) & Section 8(2) of the Integrated Goods and Services Tax Act (IGST Act) are legal, valid, and constitutional.

Briefly stated issue involved in the present case was that in the case of Dharmendra M. Jani v. Union of India and Others [LQ/BomHC/2021/691] dated 16^th June, 2021, Justice Ujjal Bhuyan, had declared Section 13(8)(b) of the IGST Act as ultra vires and unconstitutional. However, Justice Abhay Ahuja, dissenting, had held that neither Section 13(8)(b) nor Section 8(2) of the IGST Act are unconstitutional.

As a difference of opinion arose, the Division Bench directed the Registry to place the matters before the Hon'ble Chief Justice for further consideration. Thereafter, the then Hon’ble Chief Justice referred these matters for the opinion of the third Judge, Justice G.S. Kulkarni. Justice Kulkarni in Dharmendra M. Jani and Ors v. The Union of India and Ors [LQ/BomHC/2023/1612] dated 18^th April, 2023, held that the provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid and constitutional, provided that the provisions are confined in their operation to the provisions of IGST Act only.

“Considering the views taken by our learned brother Hon’ble Shri. Justice G.S.Kulkarni and one of us (Abhay Ahuja, J.), we hold the provisions of Section 13(8)(b) and Section 8(2) of the IGST to be legal, valid and constitutional,” held the court.