Chellakudam Varghese Devassykutty Vs State Tax Officer (Kerala High Court)
The petitioner, a registered taxpayer under the CGST/KSGST Act, challenged an order passed under Section 73(9) of the CGST Act whereby Input Tax Credit (ITC) relating to March 2020 was denied on the ground that the monthly returns were not filed within the time limit prescribed under Section 16(4) of the Act.
The petitioner relied on Section 16(5), a provision introduced subsequently, which provides that taxpayers who furnished returns on or before 30.11.2021 would be entitled to claim ITC. The Court noted from the show cause notice that the petitioner had filed the returns on 31.12.2020, which was before the cut-off date specified under Section 16(5).
The Court observed that Section 16(5) contains a non-obstante clause overriding Section 16(4). Therefore, where returns are filed within the period contemplated under Section 16(5), the timeline prescribed under Section 16(4) loses significance.
Holding that the petitioner had filed the returns before the cut-off date under Section 16(5), the Court found the petitioner entitled to the benefit of that provision. Accordingly, the Court quashed the impugned order and directed the respondent to reconsider the matter and grant the benefit of Section 16(5), if the petitioner was otherwise eligible.
