Saurabh Agarwalla Vs Union of India And 3 Ors (Gauhati High Court)
The Gauhati High Court set aside a demand arising from denial of Input Tax Credit (ITC) under Section 16(4) of the CGST Act, 2017, in light of subsequent statutory amendments extending the time limit for availing ITC. The petitioner had challenged a demand-cum-show cause notice dated October 20, 2023, and the consequent Order-in-Original dated February 7, 2024, which confirmed a demand of ₹2,49,142/- along with interest and penalty on the ground that ITC amounting to ₹2,38,928/- for the financial year 2018-19 had been availed beyond the prescribed time limit.
The petitioner contended that subsequent amendments to Section 16, specifically the insertion of sub-sections (5) and (6), extended the time limit for availing ITC for financial years 2017-18, 2018-19, 2019-20, and 2020-21 up to November 30, 2021. These provisions expressly allow ITC to be claimed in returns filed up to that date, notwithstanding the earlier limitation prescribed under Section 16(4).
The Court examined the amended provisions and observed that they clearly override the earlier time restrictions under Section 16(4). It noted that, in view of the amendment, a registered person is entitled to avail ITC for the specified financial years in returns filed up to November 30, 2021. Accordingly, the basis of the demand raised by the authorities no longer survived, as the petitioner’s claim fell within the extended statutory period.
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