HIGH COURT OF DELHI
Bharti Airtel Ltd. v. Union of India MANMOHAN AND SANJEEV NARULA, JJ. W.P. (C) NO. 5817 OF 2020 AUGUST 31, 2020 1. Bharti Airtel Ltd has filled writ petition challenging the inquiry letter dated 29th July, 2019 and subsequent proceedings thereunder, as also the legality of Explanation to Section 17(5)(d) of the Central Goods and Services Tax Act, 2017 (for short 'CGST Act') to the extent it excludes 'telecommunication towers' from the meaning of the term 'Plant and Machinery'. Petitioner further seeks to challenge Section 17(5)(d) of the CGST Act, to the extent it debars Input Tax Credit on construction of Immovable Property.
2. The court, after an extensive hearing, said that it is not inclined to interfere with the inquiry letter dated 29 July, 2019 as well as the proceedings initiated under the said letter.
3. However, Delhi High Court will examine the legality and validity of Explanation to Section 17(5)(d) of the CGST Act along with similar writ petitions, i.e.Riveria Commercial Developers v. UOI W.P.(C) 11633 of 2019, Bamboo Hotel & Global Centre (Delhi) Pvt. Ltd. v. UOI W.P.(C) 5457 of 2019 and Delhi International Airport Ltd. v. UOI and others W.P.(C) 4683 of 2020. It is clarified that there is no stay of the letter dated 29th July, 2019.
4. They have pray for and are permitted to file their counter-affidavits within a period of four weeks. Rejoinder-affidavits, if any, be filed before the next date of hearing.
5. The next date of hearing is on 20 November.