Saleena Shahul Hameed Vs State Tax Officer (Kerala High Court)
The petitioner, who was engaged in the distribution of SIM cards and recharge coupons, was a registered taxpayer under the CGST-SGST Act, 2017. After closing the business, the petitioner voluntarily applied for cancellation of registration, which took effect from 30.11.2018. At the time of cancellation, there was no tax liability. Nearly four years later, on 24.12.2022, the department issued an intimation under Section 73(5), alleging that the tax paid in GSTR-3B was lower than the tax declared in GSTR-1. Despite the petitioner filing a reply, proceedings continued and culminated in an order dated 30.04.2024 confirming the proposed demand of Rs. 1,52,060 with interest. This order was not appealed by the petitioner and thus attained finality.
With effect from 01.10.2024, Section 16(6) was introduced into the CGST Act through the Finance Act, 2024. This provision allows a taxpayer to claim input tax credit (ITC) in cases where a previously cancelled registration is later revoked under Section 30 or pursuant to orders of the appellate authority, the appellate tribunal, or the court. The benefit is available only where ITC was not restricted under Section 16(4) as on the date of cancellation, and the provision sets out timelines for availing ITC through returns filed under Section 39.
