Case Law Details
Platinum Ispat Industries Pvt. Ltd. Vs Union of India through the Commissioner of Central Tax (Patna High Court)
Patna High Court addressed a dispute regarding the denial of input tax credit (ITC) to Platinum Ispat Industries Pvt. Ltd. for the months of January to March in the assessment year 2018-19. The petitioner contested an assessment order dated April 9, 2024, which rejected their ITC claim due to delayed return filings in February 2020. The petitioner argued that the newly introduced Section 16(5) of the CGST Act allows ITC claims for financial years 2017-18 to 2020-21, provided returns were filed by November 30, 2021. Additionally, they referenced a government circular (No. 237/31/2024-GST) dated October 15, 2024, which provides a mechanism for rectifying orders where ITC was previously denied under Section 16(4).
The court acknowledged that under the special procedure outlined in the circular and Notification No. 22/2024, taxpayers can apply for rectification of orders issued under Sections 73, 74, 107, or 108 of the CGST Act. The process allows affected taxpayers to electronically request corrections through the GST portal. Based on these provisions, the court ruled that the petitioner is entitled to file a rectification application within the stipulated timeframe. The rectification request must be evaluated in accordance with the newly amended Section 16(5) and the government’s procedural guidelines. With this ruling, the writ petition was disposed of, providing the petitioner an opportunity to reclaim the denied ITC through the prescribed rectification process.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The petitioner is concerned with the denial of the input tax claim, as per Annexure-P/3 order of assessment passed on 09.04.2024 for three months in the assessment year 2018-19. The demand-cum-show cause notice at Annexure-P/1 indicates that the returns were filed on 04.02.2020, 05.02.2020 and 10.02.2020 respectively for the months of January to March of the assessment year 2018-19. The only contention is with respect to the input tax credit having been declined.
2. The petitioner relies on the newly introduced sub- section(5) of Section 16 of the CGST Act, which reads as under:-
“(5) Notwithstanding anything contained in sub- section(4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the thirtieth day of November, 2021.”
3. A circular has also been issued by the Government of India bearing No. 237/31/2024-GST dated 15th October, Clause 3.5 and 3.5.1 are extracted hereunder:-
“3.5 Where order under section 73 or section 74 of the CGST Act has been issued but no appeal against the said order has been filed with the Appellate Authority, or where the order under section 107 or section 108 of the CGST Act has been issued by the Appellate Authority or the Revisional Authority but no appeal against the said order has been filed with the Appellate Tribunal:
In such cases, where any order under section 73 or section 74 or section 107 or section 108 of the CGST Act has been issued confirming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now available as per the provisions of sub- section (5) or sub-section (6) of section 16 of the CGST Act, and where appeal against the said order has not been filed, the concerned taxpayer may apply for rectification of such order under the special procedure under section 148 of the CGST Act notified vide Notification No. 22/2024 – Central tax dated 08.10.2024, within a period of six months from the date of issuance of the said notification.
3.5.1. The taxpayers can file an application for rectification electronically, after login to gst.gov.in, using their credentials, by navigating as below in various cases:
a. In case where an application for rectification of an order issued under section 73 or section 74 of the CGST Act is to be filed:
i. Click Dashboard > Services > User Services > My Applications
ii. Select “Application for rectification of order” in the Application Type field. Then, click the NEW APPLICATION button.
b. In case where an application for rectification of an order issued under section 107 of the CGST Act is to be filed:
i. Click Dashboard > Services > User Services > View Additional Notices/Orders
ii. Additional Notices and Orders page is displayed. Click the View hyperlink to go to the Case Details screen of the issued Notice/Order.
iii. Case Details page is displayed. The APPLICATIONS tab is selected by Select the ORDERS tab and click the “Initiate Rectification” link.
c. In case where an application for rectification of an order issued under section 108 of the CGST Act is to be filed:
i. Click Dashboard > Services > User Services >View Additional Notices/Orders
ii. Additional Notices and Orders page is displayed. Click the View hyperlink to go to the Case Details screen of the issued Notice/Order.
iii. Case Details page is displayed. The NOTICES tab is selected by default. To submit Rectification Request against the Revision Order issued to you by the Revisional Authority, select the ORDERS tab and click the “Initiate Rectification” link.
4. Hence, by virtue of the above provision and the directions issued by the Central Government, the petitioner would be entitled to file a rectification application for consideration of the claim of input tax credit made in the return filed; if it has been so made in the returns filed as indicated from the demand-cum-show cause notice.
5. The petitioner would be entitled to file such rectification application within the time stipulated in the circular, which shall be considered in terms of the newly incorporated provisions under Section 16(5) of the CGST Act and the Circular of the Central Government.
6. The writ petition stands disposed of.
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