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.
