Case Law Details
Antony Projects Vs Superintendent of GST & Central Excise (Madras High Court)
The Madras High Court considered a writ petition challenging a show cause notice dated 30.05.2024 issued under the Central and Tamil Nadu Goods and Services Tax Acts, 2017. The impugned notice proposed recovery of ₹10,962 comprising CGST of ₹5,481 and SGST of ₹5,481 on the ground of irregular or wrongly availed input tax credit, along with interest under Section 50(1) and penalty under Section 73(1) read with Section 122(2)(a) of the GST enactments.
The petitioner contended that the dispute related to belated availing of input tax credit. It was submitted that pursuant to statutory amendments by insertion of Sections 16(4) and 16(5) of the GST laws, the deadline for filing GSTR-3B had been extended to 30.11.2021. According to the petitioner, the show cause notice was erroneous as it reckoned 28.10.2010 as the last date for filing GSTR-3B returns.
Reliance was placed on a prior decision of the same Court dated 17.10.2024 rendered in a batch of writ petitions, wherein reference was made to developments following the 53rd GST Council Meeting held on 22.06.2024. In that decision, the Court noted that the GST Council had recommended extension of the deadline for availing input tax credit on invoices or debit notes under Section 16(4) of the CGST Act. The extended deadline was deemed to be 30.11.2021 for GSTR-3B returns relating to financial years 2017–18, 2018–19, 2019–20 and 2020–21, and the recommendation had received Presidential assent on 16.08.2024.
The High Court observed that the petitioner’s case prima facie appeared to be covered by the aforesaid decision. It held that the petitioner was not precluded from relying on the said judgment before the adjudicating authority during the adjudication proceedings. However, the Court found that the writ petition was not maintainable at this stage, as an alternative and more effective statutory remedy was available and the challenge to the show cause notice was premature.
Without expressing any opinion on the merits of the dispute, the Court dismissed the writ petition. Liberty was granted to the petitioner to participate in the adjudication proceedings pursuant to the impugned show cause notice. The petitioner was directed to file a reply within 30 days from the date of receipt of a copy of the Court’s order, after which the respondent was to pass appropriate orders on merits. The Court clarified that the petitioner would be entitled to raise all submissions available in law.
The writ petition was dismissed with these directions. No order as to costs was made, and the connected miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition is before this court against the impugned Show Cause Notice dated 30.05.2024 bearing reference No.O.C.No.381 of 2024. The impugned Show Cause Notice calls upon the petitioner to show cause notice as to why:-
i. an amount of Rs.10,962/-(Rupees Ten Thousand Nine Hundred and Sixty-Two only) [CGST-Rs.5,481/- and SGST-Rs.5,481/-], being the irregular/wrongly availed Input Tax Credit as explained it should not be demanded and recovered from them as provided under Section 73(1) of the CGST Act, 2017;
ii. why interest at the applicable rate should not be charged and demanded for the irregular input tax credit mentioned in Sl.No.(i) above, as provided under Section 50(1) of the CGST Act, 2017; and
iii. why penalty should not be imposed under Section 73(1) of the Central/Tamil Nadu Goods and Services Tax Act, 2017 read with Section 122(2)(a) of the Central/Tamil Nadu Goods and Services Tax Act, 2017 for the contraventions mentioned in the preceding paragraphs.
2. The learned counsel for the petitioner submits that the dispute pertains to belated availing of input that credit and that in view of the statutory intervention by insertion of Sections 16(40 and 16(5) of the respective GST enactments, the deadline for filign GSTR-3B stood extended to 30.11.2021.
3. It is submitted that the impugned show cause notice has, however, reckoned 28.10.2010 as the last date for filing the GSTR-3B return.
4. The learned counsel for the petitioner has placed reliance on the decision of this Court rendered on 17.10.2024 in a batch of cases in W.P.Nos.25081, 26548, and connected cases (Sri Ganapathi Pandi Industries, (GSTIN:33B2QPK5727DIZG) Rep.by its Proprietor, Vs. The Assistant Commissioner (State Tax) (FAC), Tondiarpet Assessment Circle), with specific reference to paragraph No.10 which reads as follows:-
10. After filing of these Writ Petitions, certain development took place, I. e that 53rdGST Council Meeting was held on 22.06.2024, and during the said Meeting, the GST Council recommended for extension of the deadline for availing ITC on any invoice or debit note under Section 16(4) of the CGST Act and this extension would be applicable to any GSTR-3B returns filed for the Fys 2017-2018, 2018-19, 2019-20 and 2020-21 with a new deadline deemed to be as “30.11.2021”, to which, the Presidential Assent was also obtained by the Government of Indian on 16.08.2024….
5. The case of the petitioner prima facie appears to be squarely convered by the aforesaid decision. The petitioner is therefore not precluded from relying on the same before the respondent in the adjudication proceedings. Therefore, this Writ Petition is dismissed in view of the availability of an alternative and more effective remedy the challenge to the show cause notice is also premature.
6. Hence, without expressing any further opinion on the merits of the case, this case is dismissed with liberty to the petitioner to work out the remedy. The petitioner can participate in the adjudication proceedings pursuant to the impugned notice. The petitioner shall therefore file a reply within a period of 30 days from the date of receipt of a copy of this order. Thereafter, the respondent shall pass appropriate orders on merits. Needless to state, the petitioner is entitled to raise all submissions available in law.
7. This Writ Petition is dismissed with the above liberty and directions. No costs. Consequently, the connected W.M.Ps are closed.
12.11.2025
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