Safari Retreats case: Govt mulls review plea

NEW DELHI: The government is considering filing a review petition against the Supreme Court’s verdict with regard to Safari Retreats that allows commercial real estate companies to claim input tax credit (ITC) on construction costs for their rental buildings. Sources familiar with the matter indicate this ruling could impact government revenue, resulting in a shortfall of nearly Rs 5,000 crore.

In the wake of the apex court’s decision, companies across sectors have begun approaching adjudicating authorities to ascertain their eligibility for ITC. “The law committee has been tasked with evaluating whether the government should pursue a review of the Supreme Court’s order,” a top government official revealed.

Even petitioners may opt for review of certain aspects of the judgement. “There are a few aspects which are under consideration and we may file review petition for reconsideration for limited aspect,” said Abhishek A Rastogi, founder of Rastogi Chambers, who represented several petitioners.

“There are situations where the companies had availed credit but have not utilised such credits in light of the pending dispute. The adjudicating authorities will have to finalise the approach based on the principles framed by the court”, added Rastogi.

Source : https://www.newindianexpress.com/business/2024/Oct/08/safari-retreats-case-govt-mulls-review-plea