M/S. S R S Electronics Vs Superintendent of Central Tax

M/S. S R S ELECTRONICS, (A PROPRIETORSHIP CONCERN REGISTERED UNDER THE PROVISION OF CGST/SGST ACT, 2017) NO. 22, KACHOHALLI CROSS, MAGADI MAIN ROAD, BENGALURU-560 091. (REP. BY IT PROPRIETOR RAMAIAH KIRAN, S/O. RAMAIAH, AGED ABOUT 34 YEARS)

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…PETITIONER

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(BY SRI PRAKASH D, ADVOCATE)

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Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

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AND:

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SUPERINTENDENT OF CENTRAL TAX, DIVISION - NWD-4, 2^ND FLOOR, BMTC BUS STAND COMPLEX, SHIVAJINAGAR, BENGALURU-560 051.

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THE ASSISTANT COMMISSIONER OF CENTRAL TAX, NORTH DIVISION - 4, 2^ND FLOOR, BMTC BUS STAND, BANASHANKARI, BENGALURU 560 070.

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…RESPONDENTS

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(BY SRI ARVIND V CHARAN, ADVOCATE)

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2 - NC: 2026:KHC:15091 WP No. 8495 of 2026

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HC-KAR

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION, QUASHING THE SHOW CAUSE NOTICE BEARING SCN NO. 6/2024-25 DNWD4 DATED 12.05.2024 ANNEXURE-B ISSUED BY RESPONDENT NO. 1 ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

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ORAL ORDER

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The petitioner has sought for issuance of a writ of certiorari to set aside the show cause notice at Annexure-B dated 12.05.2024. The petitioner has also challenged the order of adjudication at Annexure-C and the garnishee proceedings at Annexure-D.

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It is the case of the petitioner that the petitioner is aggrieved by disallowing of the Input Tax Credit claimed on the ground that the returns filed for the month of March, 2020 was belated. In light of the same, observing that Section 16(4) of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as 'the CGST Act') does not permit availment of Input Tax Credit if the returns are filed belatedly, the Authority

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NC: 2026:KHC:15091 WP No. 8495 of 2026

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HC-KAR

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has proceeded to pass an order of adjudication disallowing the availment of Input Tax Credit.

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Learned counsel for the petitioner submits that the order of adjudication is passed on 14.08.2024 and an amendment was made under Section 16(5) of the CGST Act though subsequently providing for extension of time to claim Input Tax Credit even if return is filed beyond the time stipulated under 16(4) of the CGST Act, provided such return is filed on or before 30.11.2021, as regards the financial years 2017-18, 2018-19, 2019-20 and 2020-21.

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It is to be noticed that the observation of the adjudication authority is that the return was filed in March, 2020 for the period of April, 2019 to March, 2020. In light of the insertion of Section 16(5) of the CGST Act, if the return was filed by November, 2021, then notwithstanding the stipulation under Section 16(4) of the CGST Act, the assessee is entitled to claim Input Tax Credit. Sections 16(4) and 16(5) of the CGST Act reads as under:

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4 - NC: 2026:KHC:15091 WP No. 8495 of 2026

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HC-KAR

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Section 16 (4) of the CGST Act:

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''A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.''

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Section 16 (5) of the CGST Act :

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''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 persons shall be entitled to take input tax credit in any return under section 39 which is filed upto the thirtieth day of November, 2021."

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In light of the non-obstante clause in Section 16(5) of the CGST Act herein, the amendment has a retrospective effect and the time period provided under Section 16(4) of the CGST Act is to be construed as having been extended till November, 2021.

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In the present case, as the return for the tax period of 2019-20 was filed on 22.10.2020, which would be still within the extended time of November, 2021 and in light of the

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5 - NC: 2026:KHC:15091 WP No. 8495 of 2026

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HC-KAR

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retrospective amendment made, the order of adjudication requires to be set aside and the matter remitted to the stage of reply to the show cause notice.

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