Oyster Auto Body Vs State Tax Officer (Kerala High Court)
The Kerala High Court allowed the writ petition filed by a registered taxpayer challenging an order passed under Section 73 of the CGST Act, which had denied input tax credit (ITC) relating to the period from April 2018 to March 2019. The denial was based on the finding that the petitioner had failed to furnish the relevant returns within the time limit prescribed under Section 16(4) of the CGST Act.
The petitioner contended that the impugned order failed to consider the benefit available under Section 16(5) of the CGST Act, a provision introduced subsequently, which permits availment of ITC where the taxpayer furnishes the relevant returns within the cut-off date specified therein, namely 30 November 2021.
The Court examined the impugned order and noted that the returns pertaining to the relevant tax periods had been filed on 31 October 2019 and 20 February 2022. It observed that all the returns had been furnished within the statutory period contemplated under Section 16(5) of the CGST Act. In view of this factual position, the Court held that the petitioner was entitled to claim the benefit arising from the said provision.
Accordingly, the High Court concluded that the matter required reconsideration. The impugned order was quashed, and the first respondent was directed to reconsider the issue by extending the benefit of input tax credit under Section 16(5) of the CGST Act to the petitioner, subject to the petitioner being otherwise eligible for such benefit.
