Madras HC Quashes GST SCNs Disallowing ITC Under Sections 16(4) & 16(2)(c) in Light of Section 16(5) Amendment

R. K. Enterprises Vs Assistant Commissioner of Central Taxes (Madras High Court) Quashed SCN and Orders disallowing ITC under section 16(4) & 16(2)(c), on the basis of insertion Section-16(5) of the CGST Act Summary: In the case of R.K. Enterprises v. Union of India, the Madras High Court has quashed show cause notices and orders that had disallowed Input Tax Credit (ITC) for several financial years from 2017-18 to 2020-21. The ruling, delivered on July 2, 2025, in a batch of 36 writ petitions, hinged on the newly inserted Section 16(5) of the Central Goods and Services Tax (CGST) Act. Thi...