Case Law Details
Reinstate Renovation Solutions Vs Assistant State Tax Officer (Kerala High Court)
In the case of Reinstate Renovation Solutions vs Assistant State Tax Officer, the Kerala High Court addressed the denial of Input Tax Credit (ITC) for the financial year 2019–2020 under Section 16(4) of the CGST/SGST Acts. The petitioner challenged the order denying ITC, citing the recent notification of Section 16(5), which they argued would entitle them to the credit. The court considered the petitioner’s plea and the submissions from the government counsel.
The High Court set aside the order denying ITC, directing the competent authority to reassess the petitioner’s claim considering Section 16(5). It emphasized the need for due process, requiring a fresh hearing and order within three months of receiving the judgment copy. The petitioner retains the right to appeal on other issues related to the original order. This judgment highlights the importance of accommodating legislative changes in tax assessments and ensuring taxpayer rights are upheld.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Petitioner has approached this Court, being aggrieved by the fact that petitioner has been denied the benefit of input tax credit on account of the provisions contained in sub-section (4) of Section 16 of the CGST/SGST Acts, for the financial year 2019-2020, through Ext.P1 order dated 22.08.2024.
2. Learned counsel appearing for the petitioner would submit that, with the notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner would now be entitled to the benefit of input tax credit which has been denied to the petitioner through Ext.P1 order.
3. Heard the learned Government Pleader appearing for respondent Nos.1, 2, and 4 and the learned Standing Counsel appearing for respondent No.3 also.
4. Having heard the learned counsel appearing for the petitioner, the learned Government Pleader appearing for respondent Nos.1, 2, and 4 and the learned Standing Counsel appearing for respondent No.3 and having regard to the assertion of the learned counsel appearing for the petitioner that on account of notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner will be entitled to input tax credit, which has been denied to the petitioner by Ext.P1 order, the writ petition will stand disposed of, setting aside Ext.P1 to the extent that it denied input tax credit to the petitioner on account of the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts and directing the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts and after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a certified copy of this judgment. It will be open to the petitioner to file an appeal against any other issue in Ext.P1 before the First Appellate Authority.
Writ petition is disposed of as above.
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