Case Law Details
Aamutham Enterprises Vs Superintendent of Central GST and Central Excise (Madras High Court)
In Aamutham Enterprises Vs Superintendent of Central GST and Central Excise, the Madras High Court dealt with the validity of a GST assessment order dated August 24, 2024, concerning the financial year 2019-20. The petitioner challenged the order, arguing that it violated principles of natural justice and failed to account for retrospective amendments to Section 16(4) of the CGST Act. The issue involved the availing of Input Tax Credit (ITC) after the due date, which had been addressed in prior judgments, where similar assessment orders were set aside in light of the retrospective effect of the amendment from July 1, 2017.
Acknowledging the petitioner’s arguments and previous court rulings, the High Court set aside the impugned order and remanded the matter to the assessing officer for fresh adjudication, ensuring compliance with the amended provisions of Section 16. The Court emphasized adherence to updated legal standards and closed the connected miscellaneous petition without imposing any costs. This decision underscores the impact of legislative changes on pending tax disputes.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard Mr. N. Sudalai Muthu, learned counsel for the petitioner and Mr. R. Nanda Kumar, learned Standing Counsel for the respondent.
2. The Writ Petition has been filed challenging the order of the respondent dated 24.08.2024 passed for the F.Y.2019-20 on the ground that the same is made in violation of principles of natural justice.
3. The issue involved in the writ petition is to availing of Input Tax Credit after the due date. The said issue is no longer res integra. This Court in a batch of writ petitions in W.P.(MD)Nos. 25081 of 2024 etc., dated 17.10.2024, by taking note of the amendment to Section 16(4) of the CGST Act which came into force with retrospective effect from 01.07.2017 had quashed the similar impugned orders and thereafter this Court in a similar issue in WP(MD)No. 31980 of 2024 dated 06.07.2024 taking note of the amendment passed, had set aside the order of assessment and remitted the matter back to the assessing officer for passing order afresh.
4. The said order has not been disputed by the learned Additional Government Pleader appearing for the respondent.
5. In view of the same, the impugned order dated 24.08.2024 is set aside and the matter is remitted back to the respondent for fresh consideration in consonance with the amended provision of Section 16 of the GST Act.
6. In fine, the Writ Petition is allowed. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.
Author Bio
