Case Law Details
Chellakudam Varghese Devassykutty Vs State Tax Officer (Kerala High Court)
The petitioner, a registered taxpayer under the CGST/KSGST Act, challenged an order passed under Section 73(9) of the CGST Act whereby Input Tax Credit (ITC) relating to March 2020 was denied on the ground that the monthly returns were not filed within the time limit prescribed under Section 16(4) of the Act.
The petitioner relied on Section 16(5), a provision introduced subsequently, which provides that taxpayers who furnished returns on or before 30.11.2021 would be entitled to claim ITC. The Court noted from the show cause notice that the petitioner had filed the returns on 31.12.2020, which was before the cut-off date specified under Section 16(5).
The Court observed that Section 16(5) contains a non-obstante clause overriding Section 16(4). Therefore, where returns are filed within the period contemplated under Section 16(5), the timeline prescribed under Section 16(4) loses significance.
Holding that the petitioner had filed the returns before the cut-off date under Section 16(5), the Court found the petitioner entitled to the benefit of that provision. Accordingly, the Court quashed the impugned order and directed the respondent to reconsider the matter and grant the benefit of Section 16(5), if the petitioner was otherwise eligible.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner, a registered taxpayer under the provisions of the CGST/KSGST Act has approached this Court being aggrieved by Ext.P1 order passed under Section 73(9) of the CGST Act. As per the said order, the Input Tax Credit claimed by the petitioner pertaining to March, 2020 was declined, on the reason that the petitioner failed to submit the monthly returns for the period within the statutory period contemplated under Section 16(4) of the Act.
2. The challenge is raised by the petitioner mainly placing reliance upon Section 16(5) of the Act, which was introduced subsequently, where it is contemplated that, in case the taxpayer is furnishing the returns on or before 30.11.2021, such taxpayer shall be entitled to get the Input Tax Credit. It is discernible from Ext.P1 show cause notice that, the petitioner had submitted the returns on 31.12.2020. Thus, it is evident that the petitioner has submitted the returns before the cut off date contemplated under Section 16(5) of the Act and thus the petitioner is entitled to the benefits of the same. This is particularly because, Section 16(5) contemplates a non-obstante clause as regards Section 16(4), and hence if the taxpayer is submitting the return within the cut-off date contemplated under Section 16(5), the timeline fixed in Section 16(4) loses its significance. Therefore, the petitioner is entitled to the relief sought for.
Accordingly, this writ petition is disposed of, quashing Ext.P1 with a direction to the 1″ respondent to reconsider the matter and grant the benefit of Section 16(5) of the Act to the petitioner, if the petitioner is otherwise entitled.
Author Bio
