M/S Hemen Deka and Anr. v. the Union of India and 4 Ors.

Gauhati HC2 Apr 2025WP(C)/813/2024

Case brief

AI extract

What is this about?

Input tax credit; Section 16(5) CGST Act 2017; Finance (No.2) Act 2024; Section 39 CGST Act; invoices/debit notes FY 2018-19 to 2020-21 filed before 30.11.2021; writ petition disposed with directions to CGST Guwahati authorities; bar on coercive action pursuant to order dated 18.09.2023.

What did the court decide?

Respondent authorities directed to consider the matter and pass an appropriate order applying sub-section (5) of Section 16 of the CGST Act, 2017 (Finance Act, 2024 amendment dated 16.08.2024); respondents restrained from taking coercive action pursuant to respondent No.4's order dated 18.09.2023. ¶¶28

M/S Hemen Deka and Anr. Vs the Union of India and 4 Ors. — GST and Indirect Tax | Gauhati HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the petitioners' grievance regarding input tax credit on invoices/debit notes pertaining to financial years 2018-19, 2019-20 and 2020-21 stands redressed by the insertion of sub-section (5) in Section 16 of the CGST Act, 2017 by the Finance (No.2) Act, 2024.

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Court's answer

With the amendment of the CGST Act, 2017, particularly by insertion of sub-section (5) in Section 16, the grievance raised by the writ petitioners in this writ petition has been redressed.

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Ratio / Principle

Since the petitioners submitted their invoice/debit note pertaining to financial years 2018-19, 2019-20 and 2020-21 prior to 30.11.2021, their case falls squarely within sub-section (5) of Section 16 of the CGST Act, 2017.

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Key takeaways

The respondent authorities are directed to consider the matter and pass an appropriate order taking into consideration sub-section (5) of Section 16 of the Central Goods and Services Tax Act, 2017, as amended by the Finance Act, 2024 dated 16.08.2024.ratio¶¶25
The respondents shall not take any coercive action against the petitioners pursuant to the order dated 18.09.2023 passed by respondent No.4.ratio¶¶27

Detailed headnote1 paragraphs

Gauhati High Court (DB, Vijay Bishnoi, CJ) disposes of WP(C)/813/2024 (M/s Hemen Deka and Anr. v. Union of India and 4 Ors.). With insertion of sub-section (5) in Section 16 of the CGST Act, 2017 by the Finance (No.2) Act, 2024 permitting ITC for invoices/debit notes of FY 2017-18 to 2020-21 filed up to 30.11.2021, the petitioners' grievance is redressed; their invoices/debit notes for FY 2018-19, 2019-20 and 2020-21 were submitted before 30.11.2021 and fall within s.16(5). Respondent authorities directed to reconsider and pass an appropriate order accordingly; coercive action pursuant to respondent No.4's order dated 18.09.2023 barred.

Page No.# 1/3

GAHC010020212024

2025:GAU-AS:3947-DB

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

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Case No. : WP(C)/813/2024

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1: M/S HEMEN DEKA AND ANR. A PROPRIETORSHIP CONCERN HAVING ITS PRINCIPAL PLACE OF BUSINESS AT M.T. ROAD, CHINAKI PATH, ZOO ROAD, GUWAHATI-781024, ASSAM AND IN THE PRESENT PROCEEDINGS REPRESENTED BY ITS PROPRIETOR SHRI HEMEN DEKA, THE PETITIONER NO. 2 HEREIN.

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2: SHRI HEMEN DEKA

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S/O SRI BHABENDRA NATH DEKA R/O NEAR NTC NARENGICHANDRAPUR ROAD CHANDRAPUR KAMRUP (M) ASSAM-781150 THE PROPRIETOR OF PETITIONER NO. 1 FIRM

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VERSUS

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1: THE UNION OF INDIA AND 4 ORS. REPRESENTED BY ITS SECRETARY TO THE GOVT. OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEW DELHI-110001

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2:COMMISSIONER CGST AND CX GUWAHATI COMMISSIONERATE CENTRALGST HQRS GUWAHATI GST BHAWAN KEDAR ROAD MACHKHOWA GUWAHATI-781001

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3:THE ADDITIONAL COMMISSIONER HQRS A/E UNIT CGST AND CX GUWAHATI GST BHAWAN 2ND FLOOR KEDAR ROAD MACHKHOWA GUWAHATI-781001

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4:THE ADDITIONAL COMMISSIONER CGST AND CX GUWAHATI GST BHAWAN 2ND FLOOR KEDAR ROAD MACHKHOWA GUWAHATI781001.

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5:ASSISTANT COMMISSIONER (HQRS.TAR) CENTRAL GST COMMISSIONERATE GUWAHATI GST BHAWNA 5TH FLOOR KEDAR ROAD MACHKHOWA GUWAHATI-78100

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Page No.# 2/3

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For the Petitioner(s) : Mr. P. Baruah, Advocate. : Mr. D. Rathi, Advocate. : Mr. B. Sarma, Advocate. For the Respondent(s) : Mr. S.C. Keyal, Standing Counsel, GST.

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– B E F O R E –

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HON’BLE THE CHIEF JUSTICE MR. VIJAY BISHNOI HON’BLE MR. JUSTICE N. UNNI KRISHNAN NAIR

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03.04.2025

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(Vijay Bishnoi, CJ)

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Learned counsel appearing for the respective parties are in agreement that with the amendment of the Central Goods and Services Tax (CGST) Act, 2017, particularly by insertion of sub-section (5) in Section 16, the grievance raised by the writ petitioners in this writ petition have been redressed.

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With the coming into force of the Finance (No.2) Act, 2024, a new sub-section (5) has been inserted in Section 16 of the CGST Act, 2017, which reads as under:

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“ (5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.”

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Admittedly, the petitioners have submitted its invoice/debit note pertaining to the financial years 2018-19; 2019-20 and 2020-21 and, that too, prior to 30.11.2021 and, therefore, the case of the petitioners very well comes under the provisions of sub-section (5) of Section 16.

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The respondent authorities are directed to consider the matter and pass an appropriate order taking into consideration the provision of Sub-Section (5) of Section 16 of the Central Goods and Services Tax Act, 2017, vide Amendment (Finance Act, 2024) dated 16.08.2024.

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It is also made clear that the respondents shall not take any coercive action against the petitioners pursuant to the order dated 18.09.2023 passed by the respondent No.4.

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This writ petition stands disposed of with the above observations and directions.

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JUDGE CHIEF JUSTICE

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Comparing Assistant

M/S Hemen Deka and Anr. v. the Union of India and 4 Ors.

Case brief

What is this about?

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M/S Hemen Deka and Anr. v. the Union of India and 4 Ors.

Case brief

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What the court decided

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