Vinayaga Trading Enterprises Vs Deputy State Tax Officer (Madras High Court)
Madras High Court held that rejection of input tax credit on the ground that claim has been lodged beyond period prescribed u/s. 16(4) of the GST Act needs to be re-visited in view of section 16(5) inserted vide section 118 of the Finance (No. 2) Act, 2024.
Facts- The present Writ Petition is filed challenging the assessment order dated 31.01.2024 for the period 2017-2018, on the premise that the Input Tax Credit has been disallowed only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts.
Conclusion- Held that in view section 16(5) inserted vide section 118 of the Finance (No. 2) Act, 2024 the reasons cited by the adjudicating authority while passing the impugned order of assessment may no longer survive and the respondent would have to re-do the assessment in accordance with the above amendment. It is further submitted that subsequent to the passing of the impugned order, garnishee proceedings have also been initiated and the same may be withdrawn.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present Writ Petition is filed challenging the assessment order dated 31.01.2024 for the period 2017-2018, on the premise that the Input Tax Credit has been disallowed only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts.
