Rajib Agarwala Vs The Union of India and 5 Ors. (Gauhati High Court)
Summary: The Gauhati High Court considered a writ petition filed by Rajib Agarwala, representing DM Services Private Limited, challenging the Order-in-Original dated 13.03.2024. The petitioner challenged the order primarily on two grounds: first, the extension of the period for exercise of powers under Section 73 of the Central Goods and Services Tax Act, 2017 through Notification No. 9/2023-CT dated 31.03.2023; and second, denial of Input Tax Credit despite the petitioner having submitted the relevant return on 23.10.2019.
During the hearing, the petitioner’s counsel submitted that, in view of the amendment to Section 16 of the CGST Act, 2017 by the Finance Act, 2024, whereby Section 16(5) was inserted, the writ petition could be disposed of on the basis of Section 16(5).
The Court reproduced Section 16(5), which provides that notwithstanding anything contained in Section 16(4), in respect of invoices or debit notes relating to supplies for Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, a registered person is entitled to take Input Tax Credit in a return under Section 39 filed up to 30.11.2021. The provision is available in TaxGuru’s coverage of Section 16 of the CGST Act.
The Court observed that the Order-in-Original dated 13.03.2024 itself showed that the petitioner had submitted the return on 23.10.2019 for Financial Year 2018-19. Since the return was filed before the statutory cut-off date of 30.11.2021 prescribed under Section 16(5), the Court held that the benefit of the ITC claimed by the petitioner, amounting to Rs.84,58,480/-, could not be denied in view of Section 16(5) of the CGST Act.
Consequently, the Court found that the impugned Order-in-Original dated 13.03.2024 required interference and set it aside and quashed it. The writ petition was accordingly disposed of. The interim order passed earlier was vacated and there was no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Heard Mr. D. Saraf, the learned counsel appearing on behalf of the Petitioner and Mr. S. C. Keyal, the learned Senior counsel assisted by Mr. K. Jain, the learned counsel appearing on behalf of the Respondent Nos. 1, 3, 4, 5 & 6. None appears on behalf of the Finance and Taxation Department on call.
2. The present writ petition has been filed by the Petitioner being aggrieved by the Order-in-Original dated 13.03.2024 primarily on two grounds. The first ground is as regards the extension of the period for exercise of powers under Section 73 of the Central Goods and Services Tax Act, 2017 (for short ‘the Act of 2017’) vide Notification No.9/2023-CT dated 31.03.2023. The second ground is that the Petitioner having already submitted the return on 23.10.2019, the Petitioner should have been granted the benefit of the Input Tax Credit availed/utilized.
3. Mr. D. Saraf, the learned counsel appearing on behalf of the Petitioner submitted that taking into account the amendment of Section 16 of the Act of 2017 by the Finance Act, 2024 whereby Section 16(5) was inserted, the instant writ petition can be disposed of on the basis of Section 16(5) of the Act of 2017.
4. Taking into account the said submission, this Court finds it relevant to reproduce Sub-Section (5) of Section 16 of the Act of 2017:
“16(5). Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.”
5. A perusal of the above quoted Sub-Section would show that notwithstanding anything contained in Sub-Section (4) in respect of an invoice or debit note for supply goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take Input Tax Credit in any return under Section 39 which is filed up to 30.11.2021.
6. In the instant case, from a perusal of the Order-in-Original dated 13.03.2024, it is apparent that the Petitioner has submitted the return on 23.10.2019 for the Financial Year 2018-19. Under such circumstances, it is therefore the opinion of this Court that the benefit of the ITC claimed amounting Rs.84,58,480/- cannot be
denied in view of Section 16(5) of the Act of 2017. In that view of the matter, the impugned Order-in-Original dated 13.03.2024 is 7. Accordingly, the instant writ petition stands disposed of with the following observations and directions:
(i) The impugned Order-in-Original dated 13.03.2024 passed by the Assistant Commissioner, Goods and Services Tax, Guwahati Division-I stands set aside and quashed.
(ii) Interim order passed earlier stands vacated.
(iii) No costs.
