Remanded

M/s.Velmurugan Stores v. The Assistant Commissioner State Tax

Madras HC20 Aug 2024WP(MD)/13667/2024

Case brief

AI extract

What is this about?

Writ petition challenging an assessment order disallowing Input Tax Credit under Section 16(4) of the CGST Act. The Court set aside the order directing the assessing authority to redo the assessment considering Section 118 of the Finance (No. 2) Act, 2024, allowing delayed credit claims for specific financial years.

What did the court decide?

Impugned order dated 26.04.2024 set aside; respondent directed to redo assessment applying Finance (No. 2) Act, 2024 amendment.

M/s.Velmurugan Stores Vs The Assistant Commissioner… — GST and Indirect Tax | Madras HC (2024)

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W.P.(MD)No.13667 of 2024

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 20.08.2024

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CORAM

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THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

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W.P.(MD)No.13667 of 2024 and W.M.P.(MD)Nos.12044 and 12045 of 2024

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M/s.Velmurugan Stores, Represented by its Proprietor, I.Raja Thirupathi

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... Petitioner

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Vs.

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The Assistant Commissioner (State Tax), Jaihindpuram Assessment Circle, Madurai – 625 020.

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... Respondent

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, calling for the records on the file of the respondent in GSTIN: 33BSIPR5119N1ZA dated 26.04.2024 for the tax period 2018-2019 and quash the same as illegal, invalid, and against the provisions of Goods and Services Tax Acts, 2017.

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For Petitioner : Mr.A.Chandrasekaran

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For Respondent : Mr.R.Suresh Kumar Additional Government Pleader

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.13667 of 2024

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O R D E R

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The present Writ Petition is filed challenging the assessment order dated

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26.04.2024 for the period 2018-2019, on the premise that the Input Tax Credit has been disallowed only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts.

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2. It is submitted that an amendment has been brought into the GST Acts

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and that Section 16(5) has now been inserted vide Section 118 of the The Finance (No. 2) ACT, 2024 and the relevant provisions reads as under:

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“118. In section 16 of the Central Goods and Services Tax Act, with effect from the 1st day of July, 2017, after sub-section (4), the following sub-sections shall be inserted, namely:––

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“(5) Notwithstanding anything contained in subsection (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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(6) Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order,

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.13667 of 2024

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either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted under subsection (4) on the date of order of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under section 39,––

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(i) filed up to thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or

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(ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration,

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whichever is later.”

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3. It is submitted by the learned counsel for the petitioner that in view of

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the above amendment, the reasons cited by the adjudicating authority while passing the impugned order of assessment may no longer survive and the respondent would have to re-do the assessment in accordance with the above amendment.

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.13667 of 2024

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4. It was submitted that there is another issue that arises from the

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impugned order, viz., reversal of Input Tax Credit on exempted goods. It is submitted by the learned counsel for the petitioner that the impugned order proceeds on the basis that the petitioner had availed Input Tax Credit on exempted goods which is refuted by the petitioner stating that the Input Tax Credit claimed by him does not relate to any exempted goods and the same has not been considered by the learned adjudicating authority/respondent.

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5. The learned counsel for the petitioner would submit that earlier this Court has on numerous occasions, remanded on the basis of the Bill proposing the present amendment. The learned counsel for the respondent would submit that they would re-do the assessment taking into account the Finance (No. 2) ACT, 2024.

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6. In view thereof, the impugned order in GSTIN: 33BSIPR5119N1ZA dated 26.04.2024 is set aside. The learned assessing adjudicating authority/respondent would re-do the assessment by taking into account the amendment referred supra. The petitioner may submit their objection by way of reply, within a period of three weeks from the date of receipt of a copy of this

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.13667 of 2024

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order along with the amendment and other details. If such reply is filed, the same shall be considered and orders shall be passed, after affording reasonable opportunity of personal hearing to the petitioner. If such reply is not filed within the prescribed period, i.e., three weeks from the date of receipt of a copy of this order, the impugned order shall stand revived.

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7. With the above direction, this Writ Petition is disposed of. No costs.

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Consequently, connected miscellaneous petitions are closed.

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20.08.2024

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NCC:yes/no Index:yes/no Internet:yes/no Nsr

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To:

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The Assistant Commissioner (State Tax), Jaihindpuram Assessment Circle, Madurai – 625 020.

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.13667 of 2024

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MOHAMMED SHAFFIQ, J.

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Nsr

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W.P.(MD)No.13667 of 2024

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20.08.2024

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https://www.mhc.tn.gov.in/judis

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M/s.Velmurugan Stores v. The Assistant Commissioner State Tax

Case brief

What is this about?

What did the court decide?

M/s.Velmurugan Stores v. The Assistant Commissioner State Tax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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