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M/s. Bharath Biologicals v. The Assistant Commissioner of Cgst and Central Excise

Madras HC1 Oct 2024WP(MD)/23387/2024

Case brief

AI extract

What is this about?

Single-bench writ petition filed by a taxpayer challenging an assessment order that re-appeared after suppression under the GST Act. The petitioner argues for remaking the order based on a new amendment extending ITC timelines. The High Court set aside the order and directed re-assessment in light of the amendment.

What did the court decide?

Set aside the impugned order dated 14.12.2023 and directed the respondent to re-do the assessment taking into account the Finance (No. 2) Act, 2024.

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

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W.P.(MD)No.23387 of 2024

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 01.10.2024

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CORAM

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THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

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W.P.(MD)No.23387 of 2024 and W.M.P.(MD)Nos.19789 and 19790 of 2024

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M/s.Bharathi Biologicals, Represented by its Proprietor, M.Karthick Prabhu GSTIN 33AFWPK1140C1ZT, H1166, Ellis Nagar Housing Board Sector, Near Bye Pass Road, Madurai – 625 016.

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... Petitioner

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Vs.

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The Assistant Commissioner of CGST and Central Excise, Madurai – 1 Division, 5, V P Rathinasamy Road, B.B.Kulam, Madurai.

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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, to call for the records on the file of the respondent in Order in Original No.12/2023-GST MAD-GST-000-AC-12/2023 dated 14.12.2023 for the assessment years 2017-18 and 2018-19 and to quash the same as illegal, arbitrary, undue enrichment, without jurisdiction.

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

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W.P.(MD)No.23387 of 2024

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For Petitioner : Mr.S.Karunkar

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For Respondent : Mr.N.Dilip Kumar Standing Counsel

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O R D E R

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The present Writ Petition is filed challenging the impugned order dated 14.12.2023, on the premise that the Input Tax Credit has been disallowed only

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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 Act

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and that Section 16(5) has now been inserted vide Section 118 of the The Finance (No. 2) ACT, 2024 which has come into force with effect from 27.09.2024 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 sub-

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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

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

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W.P.(MD)No.23387 of 2024

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

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W.P.(MD)No.23387 of 2024

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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.

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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.

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5. In view thereof, the impugned order passed by the respondent dated 14.12.2023 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 order along with

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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

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

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W.P.(MD)No.23387 of 2024

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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

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order shall stand revived. In respect of other issues, assessment order would remain undisturbed.

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6. 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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01.10.2024

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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 of CGST and Central Excise, Madurai – 1 Division, 5, V P Rathinasamy Road, B.B.Kulam, Madurai.

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

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W.P.(MD)No.23387 of 2024

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MOHAMMED SHAFFIQ, J.

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Nsr

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W.P.(MD)No.23387 of 2024

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01.10.2024

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

M/s. Bharath Biologicals v. The Assistant Commissioner of Cgst and Central Excise

Case brief

What is this about?

What did the court decide?

M/s. Bharath Biologicals v. The Assistant Commissioner of Cgst and Central Excise

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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