Mellow Foundation Builders and Developers (P.) Ltd. Vs Superintendent (Kerala High Court)
The Kerala High Court addressed a dispute between Mellow Foundation Builders and Developers (P.) Ltd. and the Superintendent Central Tax and Central Excise concerning the denial of Input Tax Credit (ITC). The petitioner challenged an assessment order under Section 73(9) of the CGST Act, which included penalties and interest for the financial year 2018-19. The core issue centered on the petitioner’s failure to file GSTR-3B returns within the initially prescribed timeframe, leading to the denial of ITC under Section 16(4) of the CGST/SGST Act. Specifically, the petitioner filed returns for November 2018 to March 2019 on November 26, 2019, exceeding the original deadline of October 20, 2019. This delay resulted in the tax authorities imposing a demand and penalty, effectively disallowing the ITC claim.
However, the court acknowledged the subsequent introduction of Section 16(5), which extended the deadline for filing such returns to November 30, 2021. This extension significantly alters the context of the petitioner’s filing, as their November 26, 2019, filing now falls within the revised timeframe. The court recognized that this change necessitates a reassessment of the facts presented in the initial assessment order. Consequently, the High Court set aside the impugned order dated April 18, 2024. The court mandated that the first respondent, the Superintendent Central Tax and Central Excise, issue fresh orders within three months, considering the provisions of Section 16(5) and providing the petitioner an opportunity for a hearing. This decision effectively allows the petitioner’s ITC claim, contingent on the reevaluation of their filing under the extended deadline, and highlights the impact of legislative changes on tax assessments. The writ petition was allowed, directing a fresh review of the case.
