Partly allowed

M/s. Uvaraj Industries v. The Appellate Deputy Commissioner (St)

Madras HC4 Oct 2024WP(MD)/23735/2024

Case brief

AI extract

What is this about?

The court set aside the impugned GST assessment order insofar as it disallowed input tax credit solely on limitation grounds under Section 16(4). The matter was remanded for fresh consideration in light of the new proviso inserted by the Finance (No. 2) Act, 2024, allowing credit for specific past financial years.

What did the court decide?

Impugned order set aside to the extent of disallowing input tax credit on limitation grounds; matter remanded for fresh assessment.

M/s. Uvaraj Industries Vs The Appellate Deputy… — GST and Indirect Tax | Madras HC (2024)

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W.P.(MD)No.23735 of 2024

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 04.10.2024

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CORAM

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THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

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W.P.(MD)No.23735 of 2024 and W.M.P.(MD)Nos.20099 and 20102 of 2024

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M/s.Uvaraj Industries, Represented by its Managing Partner, D.Vetriselvan

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... Petitioner

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Vs.

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The Appellate Deputy Commissioner (ST), Goods and Services Tax, Trichy Division, 2^nd Main Road, Ponnagar, Trichy – 620 001.

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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 order bearing Appeal No.AP/GST/150/2022 dated 05.07.2023 passed by the Appellate Deputy Commissioner (ST), Trichy to quash the same.

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For Petitioner : Mr.Thangaraju Palanisamy

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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.23735 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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05.07.2023 for the period 2018-2019, on the premise that the Input Tax Credit

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has been disallowed only on the ground that the claims have been lodged

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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 Finance

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(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, either under section 30 or pursuant to any order made

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

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W.P.(MD)No.23735 of 2024

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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 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.23735 of 2024

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4. The learned counsel for the petitioner would submit that earlier this

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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 dated 05.07.2023, insofar as it disallowed the credit only on the ground that the petitioner has not lodged its claim of Input Tax Credit within the period stipulated under Section 16(4) of the Act, 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 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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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.23735 of 2024

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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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04.10.2024

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

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To:

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The Appellate Deputy Commissioner (ST), Goods and Services Tax, Trichy Division, 2^nd Main Road, Ponnagar, Trichy – 620 001.

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

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W.P.(MD)No.23735 of 2024

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MOHAMMED SHAFFIQ, J.

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Nsr

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W.P.(MD)No.23735 of 2024

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04.10.2024

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

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M/s. Uvaraj Industries v. The Appellate Deputy Commissioner (St)

Case brief

What is this about?

What did the court decide?

M/s. Uvaraj Industries v. The Appellate Deputy Commissioner (St)

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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