Case Law Details
Govindapurath Meethal Deepak Vs State of Kerala (Kerala High Court)
In Govindapurath Meethal Deepak vs State of Kerala, the Kerala High Court addressed a dispute regarding the denial of input tax credit (ITC) under Section 16(4) of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts. The petitioner, an assessee under the CGST/SGST Acts, challenged an assessment order for the year 2018-19, which denied his ITC claim based on the time restrictions in Section 16(4). He sought relief from the court, arguing that similar cases had already been addressed by the court in the M. Trade Links vs Union of India case.
After hearing both parties, the court decided to set aside the assessment order that denied ITC based on Section 16(4). The court referred to the M. Trade Links judgment, which provided similar relief, and instructed the relevant authorities to review the petitioner’s claim following the directions laid out in that decision. The court also granted a stay on any coercive proceedings related to the denied ITC until a final decision is made. The authorities were given three months to conduct a hearing and issue a revised order based on the facts of the case.
The writ petition was thereby disposed of, providing the petitioner temporary relief and the opportunity for a reassessment of the denied ITC. This judgment reinforces the need for careful application of CGST/SGST provisions and provides a reference point for similar cases involving ITC claims under Section 16(4).
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The petitioner is an assessee under the CGST/SGST Acts. He suffered Ext.P1 order of assessment for the year 2018-19. Petitioner has approached this Court, being aggrieved by the fact that the input tax credit has been denied to the petitioner on account of the provisions contained in Section 16(4) of the CGST/SGST Acts.
2. Heard both sides.
3. Having heard the learned counsel appearing for the petitioner, the learned Standing Counsel appearing for the Central Tax and Central Excise, I am of the view that, in the above facts and circumstances and taking into consideration the directions issued by this Court in Trade Links V. Union of India (2024 KLT Online 1624), this writ petition can be disposed of, setting aside Ext. P1 assessment order to the extent that it denied input tax credit on account of the provisions contained in Section 16(4) of the CGST/SGST Acts and directing that the claim of the petitioner be considered in terms of the directions issued by this Court in M. Trade Links (supra).
In the light of the above, Exts.P1assessment order is set aside to the extent that it denies input tax credit on account of the provisions contained in Section 16(4) of the CGST/SGST
Act and it is directed that benefit of the directions contained in the judgment in M. Trade Links (supra) shall also be extended to the petitioner. The competent among the respondents shall consider the directions contained in the judgment of this Court in M. Trade Links (supra) and pass orders considering the factual situation in this case, after affording an opportunity of hearing to the petitioner, within three months from the date of receipt of a certified copy of this judgment. The coercive proceedings (to the extent of input tax, which was denied to the petitioner on account of the provisions contained in Section 16(4) of the CGST/SGST Acts) shall stand suspended till a decision is taken by the respondent, as directed above.
The writ petition is ordered accordingly.
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