Case Law Details
Vellaram Kunnumal Prabeesh Vs Superintendent (Kerala High Court)
The petitioner, a registered taxpayer under the CGST and SGST Acts, challenged an order passed under Section 73 of the CGST Act that denied input tax credit (ITC) relating to December 2021, January 2022, and February 2022. The denial was based on the ground that the returns were not filed within the time limit prescribed under Section 16(4) of the CGST Act.
The petitioner contended that ITC was available under Section 16(5) of the CGST Act because the returns had been filed before the cut-off date specified in that provision. The Kerala High Court noted that the impugned order itself recorded that the relevant returns had been filed on 26.02.2021, 26.02.2021, and 01.03.2021. The Court held that the returns were filed within the cut-off date contemplated under Section 16(5). It further observed that Section 16(5) contains a non obstante clause overriding Section 16(4), and therefore the timeline under Section 16(4) loses significance once the conditions of Section 16(5) are satisfied. The Court quashed the assessment order and recovery notice and directed reconsideration of the matter.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a registered tax payer under the provisions of the CGST and SGST Act. This writ petition is submitted by the petitioner challenging Ext.P1 order passed under Section 73 of the CGST Act by which the input tax credit claimed by the petitioner pertaining to the months of December 2021, January 2022 and February 2022 were declined on the reason that the petitioner failed to submit the returns within the period stipulated in Section 16(4) of the CGST Act.
The case of the petitioner is that, he is entitled to get the benefit of input tax credit in the light of Section 16(5) of the CGST Act, as the petitioner had already submitted the return before the cut off date under the said provision, which is 30.11.2021.
After hearing the learned counsel for the petitioner and the learned Government Pleader, I find that there is some force in the said submission. This is particularly because, in the order impugned in this case itself, it is clearly mentioned that the returns for the months of December 2021, January 2022 and February 2022 were submitted by the petitioner on 26.02.2021, 26.02.2021 and 01.03.2021 respectively. Thus, it is evident that the returns were submitted within the cut off date contemplated under Section 16(5) of the Act and hence the petitioner is entitled to the benefit. This is particularly because, Section 16(5) there is a non-obstante clause, as regards Section 16(4) and therefore, once the tax payer submits the return within the cut off date contemplated under Section 16(5) of the Act, the time line in Section 16(4) loses its significance.
In such circumstances, this writ petition is disposed of quashing Ext.P1 order and Ext.P4 recovery notice with a direction to the 1st respondent to reconsider the matter and grant the benefits of Section 16(5) of the CGST Act, if he is otherwise entitled.
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