Court admitted writ challenging amendment to Rule 61(5) of CGST Rules

Sakthi Industries Vs Union of India (Madras High Court)

The Hon’ble Madras High Court in M/s. Sakthi Industries v. Union of India [W.P.No.26901 dated September 12, 2023] admitted the writ challenging amendment to Rule 61(5) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) and directed the Petitioner to pay 10% of the disputed amount within a period of 4 weeks to get the interim stay from all further proceedings. This article delves into the details of the case, including the facts, analysis, and conclusion.

Facts:

M/s. Sakthi Industries (“the Petitioner”) availed Input Tax Credit (“ITC”) which as per the Revenue Department is beyond the limitation prescribed under Section 16(4) read with Section 39 of the CGST Act (“the CGST Act”) read with Rule 61(5) of the CGST Rules and accordingly issued the demand cum show cause notice.

Thereafter, the Adjudicating Authority vide an Order dated July 25, 2023 (“the Impugned Order”) on the ground that the ITC availed by the Petitioner being beyond the time limit prescribed under Section 16(4) confirmed the demand.

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