Case Law Details
Sravana Textiles Vs Assistant State Tax Officer (Kerala High Court)
Material Facts
The petitioner, a registered taxpayer under the CGST/SGST Act, challenged an order passed under Section 73 of the CGST Act whereby input tax credit (ITC) claimed for March 2020 was denied. The denial was based on the ground that the petitioner had not filed the return within the cut-off date referred to in the order.
Procedural History
The petitioner filed a writ petition before the Kerala High Court challenging Ext. P1 order passed under Section 73 of the CGST Act.
Legal Issue
Whether the petitioner was entitled to ITC for March 2020 when the return for that period was filed on 04.01.2021 in light of Section 16(5) of the CGST Act.
Relevant Statutory Provisions
- Section 73 of the CGST Act
- Section 16(5) of the CGST Act
Parties’ Submissions
The petitioner contended that, in view of Section 16(5) of the Act, a taxpayer furnishing the relevant return on or before 30.11.2021 would be entitled to the benefit of ITC. Since the return for March 2020 was filed on 04.01.2021, it was submitted that the claim was within the statutory period.
Court’s Findings and Reasoning
The High Court noted that Ext. P1 itself recorded that the return for March 2020 had been filed on 04.01.2021. The Court observed that this filing was within the statutory period contemplated under Section 16(5).
Final Ruling
The Kerala High Court quashed Ext. P1 and directed the first respondent to reconsider the matter and grant the benefit under Section 16(5) of the CGST Act, if the petitioner was otherwise entitled to it. The respondent was directed to pass fresh orders within three months after affording the petitioner an opportunity of hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is a registered taxpayer under the provisions of the CGST/SGST Act. The grievance of the petitioner is against Ext. P1 order passed under Section 73 of the CGST Act, by which, the input tax credit claimed by the petitioner for the month of March, 2020 was declined on the reason that, the petitioner failed to submit the returns within the cut off date contemplated under Section 64 of the CGST Act.
2. As far as, the challenge is raised mainly on the ground that, in light of the Section 65 of the Act, the petitioner is entitled to get the input tax credit in view of the fact that the said provisions specifically contemplates that, in case, the taxpayer is furnishing the return on or before 30.11.2021, such taxpayer would be entitled to get the benefit. In this case, it is discernible from Ext.P1 order itself that, the return for the month of March 2020 was filed on 04.01.2021, and thus, it is filed within the statutory period contemplated under Sec.16(5).
Accordingly, this writ petition is disposed of, quashing Ext.P1 with a direction to the 1st respondent to reconsider the matter and grant the benefits under Sec.16(5) of the CGST Act, if the petitioner is otherwise entitled to the same. Necessary orders in this regard shall be passed within a period of three months from the date of receipt of copy of this judgment, after affording an opportunity of hearing to the petitioner.
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