GST assessment order disallowing input tax credit as time-barred under Section 16(4) was challenged. In view of the retrospective amendment inserting Section 16(5) via the Finance (No. 2) Act, 2024, the court set aside the impugned order and remanded the matter for reassessment.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P.(MD)No.23325 of 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 23.10.2024
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P.(MD)No.23325 of 2023 and
W.M.P(MD)No.19509 of 2023
M/s.Winet Communications, Represented by its Proprietor, No.1000-1/1, 98/1-1, LGB Complex, MK Mill Compound, Covai Road, Karur – 639 002.
... Petitioner
Vs.
The Superintendent, Karur – II Range, Office of the Superintendent of Central GST and Central Excise, Karur – 639 002. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, calling for the records of the respondent in his proceedings in O.C.No.121 of 2022, quash the order-in-original dated 27.07.2022.
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For Petitioner : M/s.C.P.Priya
For Respondents : Mr.R.Nandakumar Senior Standing Counsel M/s.S.Ragaventhre Junior Standing Counsel
O R D E R
The present Writ Petition is filed challenging the assessment order dated 27.02.2022, 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.
2. It is submitted that an amendment has been brought into the GST Acts
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:
“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:––
“(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
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W.P.(MD)No.23325 of 2023
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.”
(6) Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order, 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,––
(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
(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,
whichever is later.”
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3. It is submitted by the learned counsel for the petitioner that in view of 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.
4. 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.
5. In view thereof, the impugned order passed by the respondent dated 27.07.2022 is set aside. In respect of other issues, the impugned order shall remain undisturbed. 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 order along with
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W.P.(MD)No.23325 of 2023
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.
6. With the above direction, this Writ Petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed.
23.10.2024
NCC:yes/no Index:yes/no Internet:yes/no SN To:
The Superintendent, Karur – II Range, Office of the Superintendent of Central GST and Central Excise, Karur – 639 002.
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W.P.(MD)No.23325 of 2023
MOHAMMED SHAFFIQ, J.
SN
W.P.(MD)No.23325 of 2023
23.10.2024
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1 issue framed by the court
Whether input tax credit disallowed solely as time-barred under Section 16(4) could be reconsidered in light of the retrospectively inserted Section 16(5) via the Finance (No. 2) Act, 2024.
3 provisions across 2 enactments
M/s.Winet Communications, Represented by its Proprietor
The Superintendent, Karur – II Range, Office of the Superintendent of Central GST and Central Excise
Mohammed Shaffiq
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
