ITI Ltd Vs Union of India And 6 Ors (Gauhati High Court)
In a decision providing relief to ITI Ltd., the Gauhati High Court has set aside an order from the Additional Commissioner, Dimapur, CGST Division, and remitted the matter for fresh consideration. The case concerned a dispute over the availment of input tax credit (ITC) and other related tax demands.
The petitioner, ITI Ltd., argued that its issues regarding ITC were largely resolved by a new amendment to Section 16(5) of the CGST Act, introduced by the Finance Act, 2024. The company further contended that the impugned order dated November 19, 2024, was passed without granting a proper opportunity for a hearing.
Both the petitioner and the respondents (Union of India and others) mutually agreed that the matter should be sent back to the authority. The court, led by Mr. K. Jain for the petitioner and Mr. Z. Kulnu for the respondents, concurred with this submission.
Consequently, the court set aside the previous order and directed the respondent authorities to reconsider the case. The new adjudication must be in accordance with the amended provisions of Section 16 of the CGST Act and must provide ITI Ltd. with an opportunity for a hearing. The court mandated that this process be completed within a period of two months. The case did not establish a new judicial precedent, but rather applied an existing legal principle regarding due process and the application of new legislation.
