Venus Infra Projects Vs Assistant Commissioner ST (Madras High Court)
The Madras High Court considered a challenge to an order dated 10.02.2025, wherein the petitioner claimed entitlement to input tax credit (ITC) under Section 16(6) of the applicable GST enactments.
The petitioner relied on the order dated 28.03.2022 cancelling its GST registration and contended that, where registration is subsequently revoked, the time limit for filing returns stands extended by 30 days from the date of revocation, thereby enabling the claim of ITC.
The Revenue submitted that Sections 16(4) to 16(6) should be read together and that the petitioner was not entitled to claim ITC.
The High Court examined Section 16(6), noting that it expressly refers to Section 16(4) and makes it a pre-condition that availment of ITC in respect of an invoice or debit note should not have been restricted under Section 16(4) on the date of cancellation of registration. The Court observed that Section 16(6) is intended to protect persons who were otherwise entitled to ITC on the date of cancellation but could not file returns during the period of cancellation, by excluding that period and granting an additional 30 days from the date of revocation to file returns.
