Case Law Details
Multi Services Vs Central Board of Indirect and Customs (CBIC) (Orissa High Court)
In Multi Services Vs Central Board of Indirect Taxes and Customs (CBIC), the Orissa High Court addressed a writ petition concerning a GST dispute under the Odisha Goods and Services Tax Act, 2017 (OGST Act). The petitioner challenged an order issued on April 8, 2024, disallowing Input Tax Credit (ITC) due to delays in filing the GSTR-3B return. Citing a 2024 amendment to the CGST Act, which extended return filing deadlines for specific years, the petitioner argued that the return filed on November 26, 2019, was within the permissible timeframe. The petitioner further referenced a CBIC notification dated September 27, 2024, which brought the amendment into effect, requesting the Court to quash the impugned order.
The respondent, represented by the Standing Counsel, highlighted a CBIC circular issued on October 15, 2024, which allows taxpayers to seek rectification under Section 148 of the OGST Act within six months of the notification’s issuance. The Court observed that the procedural remedy outlined in the circular was introduced after the writ petition was filed. Considering that the rectification application period remained open, the Court directed the petitioner to comply with the procedural requirement and dismissed the writ petition.
The ruling ensures adherence to established departmental procedures, emphasizing that taxpayers must seek rectification or relief under statutory mechanisms where available before invoking judicial intervention. The case highlights the importance of aligning procedural compliance with legislative updates and departmental guidelines.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. Mrs. Wallace, learned advocate appears on behalf of petitioner and submits, impugned is order in original dated 8th April, 2024 made pursuant to demand-cum-show cause notice dated 21st December, 2023 issued under section 73 in Central Goods and Services Tax Act and Odisha Goods and Services Tax Act, both of 2017. Pointing out from paragraph 5.6.3 of impugned order she submits, availed of Impugned Tax Credit (ITC) was disallowed on delay in filing of return by GSTR-3B.
2. She draws attention to section 118 in Finance Act, 2024 to submit, there was amendment by insertion of, inter alia, sub-section (5) in section 16 of the CGST Act, extending the time for filing of return for, inter alia, financial year 2018-19, up to 30th November, 2021. She demonstrates from impugned order her client’s return was filed on 26th November 2019. She hands up notification dated 27th September, 2024 published by authority in the Gazette of India notifying coming into effect of the inserted amendment. She seeks interference for impugned order being set aside and quashed.
3. Mr. Kedia, learned advocate, Junior Standing Counsel appears on behalf of revenue and hands up circular dated 15th October, 2024 issued by Central Board of Indirect Taxes and Customs, GST policy wing. He refers to clause 3.5 to submit, where no appeal has been preferred, the assessee must apply for rectification under section 148 within period of six months from date of issuance of the notification, being said notification dated 27th September, 2024.
4. Petitioner has moved Court invoking writ jurisdiction on not having filed appeal. In the circumstances, said circular requiring petitioner to apply for rectification is to be complied with. This observation is on noticing that the circular was issued after the writ petition was presented. Considering departmental procedure is now in place for petitioner to comply with in having impugned order rectified and time for making the application is still available to petitioner, we dispose of the writ petition accordingly.
5. The writ petition is disposed of.
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