Winet Communications Vs Superintendent (Madras High Court)
Madras High Court set aside the GST assessment order against Winet Communications, which had disallowed Input Tax Credit (ITC) on the grounds of delayed claims under Section 16(4) of the GST Act. The petitioner argued that a recent amendment, introduced through the Finance (No. 2) Act, 2024, inserted Section 16(5), allowing ITC claims for past financial years up to November 30, 2021. The petitioner contended that this amendment rendered the original assessment order obsolete, necessitating a reassessment. The respondent agreed to reconsider the assessment under the updated legal framework.
Acknowledging the amendment’s implications, the court directed the assessing authority to redo the assessment, considering the new provisions. It granted the petitioner three weeks to submit objections, failing which the original order would stand reinstated. The court also mandated a reasonable opportunity for a personal hearing before issuing a fresh order. With this ruling, the court ensured compliance with updated tax laws while providing procedural fairness to the taxpayer.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present Writ Petition is filed challenging the assessment order dated 27.02.2022, on the premise that the Input tax credit has been disallowed only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts.
