Diamond Timber Industries Vs Superintendent of CGST & CX (Calcutta High Court)
Calcutta High Court has ordered the reconsideration of an Input Tax Credit (ITC) denial to Diamond Timber Industries, which was initially disallowed due to the late filing of its Goods and Services Tax Return (GSTR-3B). The decision, concerning an adjudication order dated August 17, 2024, mandates a fresh review in light of the recently inserted Section 16(5) of the CGST/WBGST Act, 2017.
The petitioner had claimed ITC, but the tax authorities rejected it on the premise that the GSTR-3B for the tax period August 2019 to March 2020 was filed beyond the stipulated deadline, specifically by January 14, 2021.
Justice Md. Nizamuddin, presiding over the matter, observed prima facie that the assessee sought the benefit of Section 16(5). This provision, inserted into the GST Act, appears to offer relief in such scenarios. Consequently, the High Court deemed it appropriate to set aside the previous adjudication order. The matter has been remanded back to the proper officer, instructing a fresh deliberation of the ITC claim, explicitly taking into account the implications of the new Section 16(5). The writ petition was disposed of with these directions, allowing Diamond Timber Industries another opportunity to present its case.
