Kabriyal Rajan Vs Supertintendent (Madras High Court)
The writ petition was disposed of at the admission stage after hearing both sides. The petitioner challenged the impugned order dated 10.04.2024 issued in DRC-07 and the summary demand dated 29.03.2025 for the tax period 2018–2019, by which Input Tax Credit (ITC) was denied on the ground that returns were not filed within the prescribed time.
On a prima facie reading, the denial of ITC was solely based on delayed filing of returns. The Court noted that this issue stood settled in favour of the petitioner due to statutory intervention through the insertion of Sections 16(5) and 16(6) into the respective GST enactments. These provisions were introduced by the Finance (No.2) Act, 2024, with retrospective effect from 01.07.2017, as notified on 16.08.2024. In light of this amendment, the petitioner was held to be prima facie entitled to ITC.
The Court also relied on Circular No. 237/31/2024-GST dated 15.10.2024. Paragraph 3.5 of the Circular clarifies that where demands confirming wrong availment of ITC were issued under Sections 73, 74, 107, or 108 of the CGST Act, and no appeal was filed, taxpayers may seek rectification under the special procedure notified under Section 148 of the CGST Act, provided such ITC has become available under Sections 16(5) or 16(6). Such rectification must be sought within six months from the notification dated 08.10.2024.
