Manoj Kumar Singh Vs Principal Commissioner (Jharkhand High Court)
The writ petition before the Jharkhand High Court sought declarations regarding the validity and applicability of Section 16(4) of the CGST Act, 2017, contending that it was unconstitutional and that input tax credit (ITC) availed for October 2018 to March 2019 was valid despite delay. The petitioner also challenged an appellate order dated 29.12.2023 which had allowed the revenue’s appeal on the ground that the amendment to Section 16(4) introduced by the Finance Act, 2022 was not applicable.
The Court declined to examine the constitutional challenge at this stage, noting that after the appellate order, Section 16 of the CGST Act had been amended by insertion of sub-section (5), permitting availment of ITC for specified financial years up to 30.11.2021, notwithstanding Section 16(4). The Court also took note of CBIC Circular dated 15.10.2024 clarifying implementation of sub-sections (5) and (6) of Section 16. Relying on a coordinate Bench decision which had remanded a similar matter after considering the amendment, the Court quashed the appellate order dated 29.12.2023. The matter was remitted to the appellate authority to decide the revenue’s appeal afresh in accordance with law after considering the impact of Section 16(5) and the CBIC circular. Directions were issued for appearance of parties and disposal within a stipulated timeframe, while keeping all contentions open.
