Arunachala Gas Agency Vs Assistant Commissioner (Madras High Court)
The petitioner, a registered dealer under the Goods and Services Tax Act, 2017 (GST Act) and the Central Goods and Services Tax Act, 2017 (CGST Act), filed the present writ petition challenging the orders passed by the respondent Department reversing its claim of Input Tax Credit (ITC) and directing payment of tax, penalty, and interest.
During the hearing, both parties submitted that the issue involved in the present writ petition was squarely covered by a common order of the Court dated 17.10.2024 in a batch of writ petitions. In those cases, the petitioners were registered dealers who had filed GSTR-1 returns in time but were unable to file GSTR-3B returns within the prescribed period due to difficulties such as financial constraints arising from the COVID-19 lockdown, health-related ailments, and fire accidents. As a result, they could not raise their ITC claims within the stipulated time under Section 16(4) of the CGST Act.
The Department issued show cause notices proposing reversal of ITC and subsequently confirmed such proposals through impugned orders, directing payment of tax, penalty, and interest. The petitioners challenged those orders before the Court.
After the filing of those writ petitions, significant developments took place. At the 53rd GST Council Meeting held on 22.06.2024, the Council recommended extension of the deadline for availing ITC on invoices or debit notes under Section 16(4) of the CGST Act. The extension applied to GSTR-3B returns for the financial years 2017-18, 2018-19, 2019-20, and 2020-21, with a new deadline deemed as 30.11.2021. The recommendation received Presidential assent on 16.08.2024 and was given effect through the Finance Act (No.2) of 2024. Subsequently, Notification No.17 of 2024-Central Tax dated 27.09.2024 and Circular No.237/31/2024-GST were issued clarifying the implementation of the amended provisions.
