Shri Sai Super Market Vs Union of India (Jharkhand High Court)
Jharkhand High Court ruled in favor of Shri Sai Super Market, addressing the disallowance of Input Tax Credit (ITC) worth ₹11,93,004 for delayed filing of GSTR-3B returns for FY 2019-20. The case revolved around the applicability of Section 16(4) of the Central Goods and Services Tax Act, 2017, which initially limited the time for claiming ITC. However, the Finance (No. 2) Act, 2024, amended Section 16 by inserting subsection (5), extending the deadline for ITC claims to November 30, 2021, for returns from FY 2017-18 to FY 2020-21. Shri Sai Super Market argued that their returns were filed within this extended period and sought relief against the disallowance, interest, and penalty imposed by the GST Department.
After hearing both parties, the High Court acknowledged the legislative changes and directed the GST authorities to allow ITC for the petitioner. The court also ordered the refund of any interest and penalties collected, along with 6% interest per annum from the collection date until repayment. The judgment underscores the implications of retrospective legislative amendments in providing relief to taxpayers who missed earlier deadlines for procedural compliance. The writ petition was disposed of in favor of Shri Sai Super Market.
