GST ITC Denial Set Aside as Returns Were Filed Before Section 16(5) Cut-Off Date

Poothankara Anoopkumar Vs Superintendent (Kerala High Court)

The petitioner, a registered taxpayer under the CGST/KGST Act, challenged an Order-in-Original that denied input tax credit (ITC) for January and February 2019 on the ground that returns were not filed within the period prescribed under Section 16(4) of the CGST Act. The petitioner contended that Section 16(5) entitled him to the ITC since the returns were filed on 11.01.2020, before the cut-off date of 30.11.2021 specified in that provision. The Kerala High Court noted that the returns had been filed within the period contemplated under Section 16(5). Accordingly, the Court quashed the impugned order and directed the authority to reconsider the matter and grant the benefit of ITC under Section 16(5), if the petitioner was otherwise eligible.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner is a registered taxpayer under the provisions of the CGST/KGST Act. The challenge raised in this writ petition is against Ext.P2 Order-in-Original passed by the 1st respondent, by which, the input tax credit claimed by the petitioner, pertaining to the months of January 2019 and February 2019 was declined, on the reason that the petitioner failed to submit the returns within the period stipulated under Section 16(4) of the CGST Act.

The challenge is raised by the petitioner mainly on the ground that, as per Section 16(5) of the CGST Act, the petitioner is entitled to get the input tax credit, as the petitioner had submitted the returns before the cut off date contemplated under the said provision, which is 30.11.2021. It is discernible from Ext.P1 show cause notice that, the petitioner had submitted the returns for the months of January and February 2019 on 11.01.2020, and thus, it is clear that, the petitioner had fulfilled the condition for getting the benefits of Section 16(5) of the CGST Act.

In such circumstances the petitioner is entitled to get the reliefs sought for in the writ petition. Accordingly, this writ petition is disposed of quashing Ext.P2 with a direction to the 1st respondent to reconsider the matter and grant the benefit of input tax credit, in the light of Section 16(5) of the CGST Act, if the petitioner is otherwise entitled to the same.

In such circumstances the petitioner is entitled to get the reliefs sought for in the writ petition. Accordingly, this writ petition is disposed of quashing Ext.P2 with a direction to the 1st respondent to reconsider the matter and grant the benefit of input tax credit, in the light of Section 16(5) of the CGST Act, if the petitioner is otherwise entitled to the same.