Case Law Details
Trident Infraprojects Pvt. Ltd. Vs State of Assam And 2 Ors (Gauhati High Court)
In the case of Trident Infraprojects Pvt. Ltd. Vs State of Assam and Others, the Gauhati High Court addressed the issue concerning the input tax credit under the Central Goods and Services Tax (CGST) Act, 2017. The petitioner sought to claim input tax credit (ITC) on invoices and debit notes pertaining to the financial year 2018-19. The grievance raised by the petitioner had been resolved with the introduction of a new sub-section (5) in Section 16 of the CGST Act by the Finance (No. 2) Act, 2024. This amendment allows taxpayers to claim ITC for invoices pertaining to the years 2017-18 through 2020-21 in any return filed up to November 30, 2021. The court noted that the petitioner’s case fell within this provision since the relevant invoices had been submitted before the deadline.
The court directed the respondent authorities to review the case and make a decision in accordance with the newly inserted provision in the CGST Act. Furthermore, the court ordered that no coercive actions be taken against the petitioner, as per an earlier order passed by the respondent authority in December 2023. This judgment highlights the role of legislative amendments in resolving ongoing disputes related to tax credits and emphasizes the procedural fairness to ensure taxpayers’ rights are upheld. The writ petition was disposed of with these observations and directions, offering relief to the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF GAUHATI HIGH COURT
Learned counsel appearing for the respective parties are in agreement that with the amendment of the Central Goods and Services Tax (CGST) Act, 2017, particularly by insertion of sub-section (5) in Section 16, the grievance raised by the writ petitioners in this writ petition have been redressed.
With the coming into force of the Finance (No. 2) Act, 2024, a new sub-section (5) has been inserted in Section 16 of the CGST Act, 2017, which reads as under:
“(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.”
Admittedly, the petitioner has submitted its invoice/debit note pertaining to the financial year 2018-19 and, that too, prior to 30.11.2021 and, therefore, the case of the petitioner very well comes under the provisions of sub-section (5) of Section 16.
The respondent authorities are directed to consider the matter and pass an appropriate order taking into consideration the provision of Sub-Section (5) of Section 16 of the Central Goods and Services Tax Act, 2017, vide Amendment (Finance Act, 2024) dated 16.08.2024.
It is also made clear that the respondents shall not take any coercive action against the petitioner pursuant to the order dated 30.12.2023 passed by the respondent No. 3.
This writ appeal stands disposed of with the above observations and directions.
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