Ohm Sakthi Blue Metals Vs Superintendent of GST & Central Excise (Madras High Court)
In the case of Ohm Sakthi Blue Metals vs Superintendent of GST & Central Excise, the Madras High Court addressed a dispute regarding a one-day delay in filing GSTR-3B for the financial year 2019-2020. The petitioner was issued a show cause notice by the tax authorities on 16 May 2024 for the delayed filing, which resulted in a tax demand of ₹3,46,866 along with interest. The petitioner argued that the delay occurred due to the COVID-19 pandemic and sought to quash the notice.
The petitioner’s counsel contended that Section 16(4) of the CGST/TNGST Act, 2017, which was invoked to justify the demand, is procedural and not mandatory. Moreover, the petitioner highlighted that the 53rd GST Council meeting recommended extending the deadline for availing Input Tax Credit (ITC) and GSTR-3B filings for the relevant financial years. The counsel argued that this retrospective amendment should apply to the petitioner’s case, given the minimal delay and extenuating circumstances.
The GST authorities, however, maintained that the delay, even if by one day, violated the provisions of Section 16(4), which they deemed mandatory. They argued that the petitioner was not entitled to ITC beyond the statutory period and that the tax demand was valid. They requested the court to dismiss the petition and uphold the notice.
