Hardcastle challenges ‘arbitrary’ notification prescribing lower rate but denying ITC for Restaurants

Gujarat HC issues notice in a writ petition filed by Hardcastle Restaurants (operating restaurants under McDonald’s brand name) challenging the Explanation inserted vide Notification No. 46/2017-Central Tax (Rate) dated November 14, 2017 which prescribes the rate of tax for the restaurant sector at 2.5% without ITC; Petitioner contends that, the Explanation which is arbitrary, takes away the right of the restaurant sector to avail the option of paying higher rate of ta...