Zach Rubber Private Limited Vs State Tax Officer (Kerala High Court)
The Kerala High Court considered a writ petition filed by a registered taxpayer challenging an order passed under Section 73 of the CGST/SGST Act, 2017. The impugned order identified two defects: first, that the petitioner had not filed the return for March 2020 within the period prescribed under Section 16(4) of the CGST Act; and second, that excess input tax credit had been availed based on the entries in GSTR-2A.
The petitioner stated that the amount determined in relation to the second defect had already been remitted and confined the dispute to the rejection of input tax credit for March 2020 on the ground of violation of Section 16(4).
The petitioner relied upon Section 16(5) of the CGST Act, contending that where the return was furnished on or before 30.11.2021, the taxpayer would be entitled to claim input tax credit. Referring to the returns produced, the Court noted that the petitioner had filed the relevant return on 17.11.2020, which was within the cut-off date contemplated under Section 16(5).
Accordingly, the High Court quashed the impugned order to the extent it denied the input tax credit claimed for March 2020 on the ground of violation of Section 16(4). The Court directed the first respondent to reconsider the matter and grant the benefit of input tax credit for March 2020 in the light of Section 16(5), if the petitioner was otherwise entitled to the same. Fresh orders were directed to be passed within three months after affording the petitioner an opportunity of hearing.
