Philip Thomas Vs State Tax Officer (Kerala High Court)
The Kerala High Court examined a writ petition challenging an order passed under Section 73 of the CGST Act that rejected the petitioner’s claim for input tax credit (ITC) for March 2020. The rejection was based on the ground that the return for March 2020 was not filed within the time limit prescribed under Section 16(4) of the CGST Act. The petitioner contended that, in view of the newly introduced Section 16(5) of the CGST Act, ITC could not be denied since the return for March 2020 was filed before the cut-off date of 30 November 2021. On examining the record, the Court found that the petitioner had in fact filed the GSTR-3B return for March 2020 on 02 November 2020. The Court noted that Section 16(5) begins with a non obstante clause overriding Section 16(4), and therefore once the conditions under Section 16(5) are satisfied, the limitation under Section 16(4) loses significance. Holding that the benefit of Section 16(5) was applicable, the Court found merit in the petitioner’s challenge. Accordingly, the Court quashed the impugned orders and directed the tax authority to reconsider the matter and grant the benefit of Section 16(5) of the CGST Act, if the petitioner was otherwise entitled. The authority was directed to pass fresh orders within three months after providing an opportunity of hearing to the petitioner.
