K. Sudhakar and Co. Vs Superintendent of GST and Central Excise (Madras High Court)
The Madras High Court considered a writ petition filed by a registered taxpayer challenging an order passed by the GST authorities, whereby the petitioner’s claim for Input Tax Credit (ITC) was reversed and consequential tax, penalty, and interest were imposed. The petitioner contended that although GSTR-1 returns had been filed on time, the GSTR-3B returns could not be filed within the prescribed period due to difficulties such as financial constraints during the COVID-19 lockdown, health issues, and other disruptions. As a result, ITC claims were not made within the stipulated timeline, leading the department to issue show cause notices and confirm reversal of ITC.
During the hearing, both parties acknowledged that the issue involved had already been addressed by a prior common order of the Court dated 17.10.2024. In that earlier decision, the Court had examined similar cases where ITC claims were denied due to delay under Section 16(4) of the CGST Act. The Court took note of subsequent legislative developments, including the 53rd GST Council Meeting held on 22.06.2024, which recommended extending the deadline for availing ITC for financial years 2017-18 to 2020-21. This recommendation was implemented through the Finance Act (No.2) of 2024, with retrospective effect from 01.07.2017, and corresponding notification and circular issued by the Central Board of Indirect Taxes and Customs.
