Case Law Details
Shri Sai Super Market Vs Union of India (Jharkhand High Court)
Jharkhand High Court ruled in favor of Shri Sai Super Market, addressing the disallowance of Input Tax Credit (ITC) worth ₹11,93,004 for delayed filing of GSTR-3B returns for FY 2019-20. The case revolved around the applicability of Section 16(4) of the Central Goods and Services Tax Act, 2017, which initially limited the time for claiming ITC. However, the Finance (No. 2) Act, 2024, amended Section 16 by inserting subsection (5), extending the deadline for ITC claims to November 30, 2021, for returns from FY 2017-18 to FY 2020-21. Shri Sai Super Market argued that their returns were filed within this extended period and sought relief against the disallowance, interest, and penalty imposed by the GST Department.
After hearing both parties, the High Court acknowledged the legislative changes and directed the GST authorities to allow ITC for the petitioner. The court also ordered the refund of any interest and penalties collected, along with 6% interest per annum from the collection date until repayment. The judgment underscores the implications of retrospective legislative amendments in providing relief to taxpayers who missed earlier deadlines for procedural compliance. The writ petition was disposed of in favor of Shri Sai Super Market.
FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT
1. This application has been filed seeking for the following reliefs:-
(i) For issuance of an appropriate writ/order/direction, including Writ of Certiorari for quashing/setting aside the Order-in-Original No. 08/SUPDT./CGST&CX/ CHAS-II/BK-1/2024 dated 14.08.2024 [Annexure-8] passed under Section 73 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as “CGST, 2017” for short) by Respondent No. 4, wherein by relying upon provisions of Section 16(4) of the CGST Act, 2017, Input Tax Credit (hereinafter referred as “ITC” for short) to the tune of Rs. 11,93,004/- has been disallowed for the Financial Year 2019-20 and Petitioner has been directed to reverse the said amount of ITC along with applicable rate of interest and penalty on the sole ground that Petitioner filed its Monthly Returns in GSTR-3B after due date of furnishing of returns under Section 39 of the CGST Act, 2017; especially because, vide Finance (No.2) Act, 2024 notified vide Notification dated 16th August, 2024 [Annexure-9], sub section (5) of Section 16 of the CGST Act, 2017 has been inserted extending the period for filing of returns prescribed under Section 39 of the CGST Act, 2017 till 30th November, 2021 for the Financial Year 2017-18 to 2020-21 with effect from 1st July, 2017;
(ii) For issuance of further appropriate writ/order/direction including Writ of Declaration, declaring that Petitioner is duly entitled to claim ITC amounting to Rs.11,93,004/- as vide Finance (No.2) Act, 2024 notified vide Notification dated 16th August, 2024 [Annexure-9], Section 16(5) of the Central Goods and Services Tax Act, 2017 has been inserted extending the period for filing of returns prescribed under Section 39 of the CGST Act, 2017 i.e. GSTR-3B returns upto 30th November, 2021 for the Financial Year 2017-18 to 2020-21 and Petitioner filed its returns in GSTR-3B within the said extended period.
2. Heard both sides.
3. In view of Clause (5) of Section 16 inserted by the Finance (No.2) Act, 2024, with effect from 01.07.2017, the respondents are directed to allow the petitioner to take Input Tax Credit in respect of delayed returns filed for the Financial Year 2019-20, and the interest and penalty levied on the petitioner by the respondents shall be refunded with 6% p.a. interest from the date of such collection till the date of repayment.
4. Accordingly, this writ petition stands disposed of.
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