We Match Vs State Tax Officer TPS (Kerala High Court)
The petitioner, a registered taxpayer under the CGST/KSGST Act, challenged an order passed under Section 73(9) of the CGST Act whereby Input Tax Credit (ITC) relating to the assessment year 2018-19 was denied. The denial was based on the finding that the petitioner had not filed monthly returns for the period April 2018 to March 2019 within the time limit prescribed under Section 16(4) of the Act.
The petitioner relied on Section 16(5) of the Act, which was introduced subsequently and provides that taxpayers who furnished returns on or before 30.11.2021 would be entitled to claim ITC. The show cause notice revealed that the petitioner had filed the returns for April 2018 to March 2019 on 27.11.2019 and 28.11.2019.
The High Court observed that the returns were filed before the cut-off date specified in Section 16(5). It further noted that Section 16(5) contains a non-obstante clause with respect to Section 16(4). Therefore, where returns are filed within the cut-off date under Section 16(5), the timeline prescribed under Section 16(4) loses significance.
Accordingly, the Court quashed the impugned order and directed the authority to reconsider the matter and grant the benefit of Section 16(5), if the petitioner was otherwise entitled.
