Case Law Details
Parameswaran E. C. Vs Assistant Commissioner (Kerala High Court)
Introduction: The Kerala High Court recently addressed the writ petition filed by Parameswaran E. C., challenging the assessment orders (Exhibits P-3 and P-5) issued by the Assistant Commissioner. The petitioner sought to quash these orders, which determined a substantial tax liability totaling 2,22,38,370/- under CGST, SGST, along with CESS, interest, and penalties.
Detailed Analysis: The crux of the dispute revolves around the rejection of the petitioner’s rectification application (Exhibit P-4) on the grounds that the entire Input Tax Credit (ITC) was not availed through self-assessment returns within the stipulated time frame. The court noted that the petitioner failed to utilize the ITC by the last date under Section 16(4) of the CGST Act, 2017, read with relevant sections of the IGST Act and the Goods and Services Tax (Compensation to States) Act. Consequently, the petitioner was deemed ineligible for the un-utilized ITC, with only a credit of Rs. 83,77,861.17/- under Compensation CESS being acknowledged.
The impugned orders, Exhibits P-3 and P-5, were dated 02.12.2022 and 24.05.2023, respectively, pertaining to the financial year 2017-18. However, the court highlighted that the petitioner has the recourse of filing an appeal under Section 107 of the Central Goods and Services Tax Act, 2017. Notably, the deadline for appealing, concerning the financial years 2017-18 and 2018-19, has been extended until 31.01.2024, as per a notification dated 02.11.2023 by the Central Board of Indirect Taxes and Customs.
Conclusion: In light of the above, the Kerala High Court disposed of the writ petition but granted the petitioner the liberty to approach the Appellate Authority under the provisions of the CGST/SGST Act, 2017, against the contested orders within a month. The court emphasized the need for an expeditious consideration of the appeal by the Appellate Authority in accordance with the relevant legal provisions. This development provides a pathway for the petitioner to seek redressal through the established appellate process in GST matters.
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