Retrospective amendment to deny credit of EC and SHEC challenged before Gujarat HC

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M/s Grasim Industries Limited (“the Appellant”) filed a writ petition before Hon’ble Gujarat High Court challenging the validity of amendment in Central Goods and Services Tax Act, 2017 (“CGST Act, 2017”) vide Section 28 of Central Goods and Services Tax Amendment Act, 2018 (“CGST Amendment Act, 2018”).

Vide Section 28 of CGST Amendment Act, 2018, the Government denied the credit of Education Cess (“EC”) and Secondary Higher Education Cess (“SHEC”) retrospectively w.e.f. July 01, 2017. These credits were earlier allowed to be carried forward under GST, if duly reflected in last return of pre-GST regime, as these were covered within scope of ‘CENVAT credit’. The Appellant contended that, such type of amendments is violative to Article 19(1)(g) of the Constitution of India, being absolutely arbitrary and unreasonable.


The Hon’ble Gujarat High Court vide oral order dated July 10, 2019 in R/Special Civil Application No. 11061 of 2019 issues notice to Attorney General of India and to respondents for explaining the reasons for bringing around such amendment with retrospective effect. Interim relief was granted, and next hearing date was fixed for July 31, 2019.

Citation: Grasim Industries Limited vs. Union of India