Om Sakthi Maligai Vs Superintendent of GST & Central Excise (Madras High Court)
The Madras High Court disposed of a writ petition challenging an order dated 26.04.2024, which had confirmed a demand arising from a Show Cause Notice dated 25.12.2023 for the tax period April 2018 to March 2019. The demand was confirmed due to the petitioner’s failure to respond to the notice and on the ground that Input Tax Credit (ITC) had been availed belatedly under Section 16(4) of the GST enactments.
During the proceedings, it was noted that subsequent legislative changes had materially altered the legal position. Specifically, Section 16(5) and Section 16(6) were introduced through the Finance (No.2) Act, 2024, with effect from 27.09.2024 and given retrospective effect from 01.07.2017. These provisions effectively condoned delays in availing ITC for earlier tax periods, subject to fulfillment of prescribed conditions.
The Court observed that, by virtue of this statutory intervention, the earlier disallowance of ITC on account of delay stood cured. Even though the petitioner had not filed a reply to the Show Cause Notice, the Court held that the petitioner could still claim the benefit of ITC, provided it furnishes the necessary documents to establish entitlement, including proof relating to the transactions on which credit was claimed.
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